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The Attraction of Foreign Manufacturing Investments: Investment Promotion and Agglomeration Economies / Keith Head, John C. Ries, Deborah L. Swenson.
- Format:
- Book
- Author/Creator:
- Head, Keith.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w4878.
- NBER working paper series no. w4878
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Other Title:
- The Attraction of Foreign Manufacturing Investments
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 1994.
- Summary:
- We study Japanese investments between 1980 and 1992 to assess the effectiveness of state promotion efforts in light of strong agglomeration economies in Japanese investment. Two policy variables are consistently shown to influence the location of investment - foreign trade zones and labor subsidies. We use simulations to explore the impact these policies had on the geographic distribution of Japanese investment. The simulations reveal that in aggregate promotion programs largely offset each other; however, unilateral withdrawal of promotion causes individual states to lose substantial amounts of foreign investment.
- Notes:
- Print version record
- October 1994.
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