E. M. Ekanayake

A Study of Foreign Direct Investment Stock in the U.s.economy: State Based Determinants E. M. Ekanayake

Foreign direct investment (FDI) plays an extraordinary and growing role in the global economy and represents an integral part of the U. S. economy. During the past three decades, foreign direct investment has become one of the leading factors promoting the process of globalization. In the early 1970s the United States became a significant recipient of FDI. The U. S. became a host for foreign affiliates as well as a home for multi-national firms. The flow of foreign capital during the 1980?s and the second part of 1990?s has been a key factor contributing to sustained economic growth. The inward US FDI stock constitutes an important factor contributing to the output growth and employment in the U. S. economy. The related FDI literature provided empirically tested evidence on a significant impact of inward FDI stock on output growth and employment in the U. S. economy.