The Factors Affecting the Location of Foreign Direct Investment by U.S. Companies Pre and Post 9-11
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This research examines the motivational factors that influence the location of U.S. Foreign Direct Investment (FDI) in a post 9-11 world. Market factors, in the past, have been a dominant motivation in choosing a location for investment. Political stability of the host location has also been a factor. Political stability refers to the characteristics of a country that provide U.S. firms with a sense of security, such as a consistent legal system and a stable government friendly to the U.S. This research looks at whether political stability is the dominant driving force in the location of U.S. FDI post 9-11. This hypothesis is tested through a comparison of the location characteristics of all the world’s countries pre and post 9-11 where the U.S. has reported investments. Using data provided by Dunn and Bradstreet Investor Information Service for 1995, 2000 and 2005, I use ordinary linear regression analysis. Results, in fact, show that political stability is a driving force for post 9-11 U.S. FDI. Further, this research compares past studies in order to explain differences in U.S. FDI in a pre and post 9-11 world.
SubjectForeign Direct Investment
Newton, Brent Alexander; Mileski, Joan P. (2008). The Factors Affecting the Location of Foreign Direct Investment by U.S. Companies Pre and Post 9-11. Available electronically from