Foreign Direct Investment in the United States – Benefits, Suspicions, and Risks with Special Attention to FDI from China: 100 (Policy Analyses in International Economics) - Softcover

Graham, Edward; Moran, Theodore; Oldenski, Lindsay; Krugman, Paul

Softcover

ISBN 10: 0881326607 ISBN 13: 9780881326604

Publisher: Peterson Inst Int Economics, 2012

Synopsis

Foreign direct investment (FDI) has emerged over the past three decades as a central force in global economic activity. Foreign affiliates of multinational corporations produce goods and services in volumes that are twice as large as total world exports. This volume reviews concerns that originated with inward Japanese investment in the United States in the 1980s and updates comparisons of the wages, value added, total factor productivity, imports, exports, and research and development (R&D) of foreign investors—including Japanese, and now Chinese, investors—with comparable US firms (US multinational firms and US non-multinational firms) using most recent Bureau of Economic Activity data available as of 2012. The evidence shows that foreign direct investment represents transfers of technology, management, quality control, and marketing know-how across borders that are much more intimate and potent than arm’s-length trade.

Contrary to fears about potential negative consequences of Chinese FDI, the evidence shows that Chinese firms create high-paying jobs in the United States, and that they sometimes export more from their US locations than they import. The volume tackles thorny questions about inward FDI—especially via acquisition of existing US firms—and potential national security threats to the United States. It draws implications for US policies that would enhance the advantages and help avoid missing out on the benefits from inward FDI into the United States.

About this title

About the Author

Theodore H. Moran, nonresident senior fellow, has been associated with the Peterson Institute since 1998. He holds the Marcus Wallenberg Chair at the School of Foreign Service in Georgetown University. He is the founder of the Landegger Program in International Business Diplomacy at the university and serves as director there. He also serves as a member of Huawei's International Advisory Council. From 2007 to 2013 he served as Associate to the US National Intelligence Council on international business issues. Lindsay Oldenski, nonresident senior fellow at the Peterson Institute for International Economics since December 2013, is an associate professor of international economics at Georgetown University's School of Foreign Service. Prior to joining the Georgetown faculty, Oldenski taught at the Johns Hopkins University School of Advanced International Studies and California State University, San Marcos. She has also worked as an economist at the US Department of Treasury, an analyst at the Federal Reserve Bank of Boston, and a consultant in the biotech industry.

About this edition

• Publisher: Peterson Inst Int Economics
• Publication date: 2012
• ISBN 10: 0881326607
• ISBN 13: 9780881326604
• Binding: Paperback
• Edition number: 3
• Number of pages: 90