Public opinion on U.S. investment in foreign countries: Survey evidence from 11 southern states in the United States

Hye‐Sung Kim, Youngchae Lee and Scott Huffmon

Social Science Quarterly, 2022, vol. 103, issue 5, 1113-1124

Abstract: Objective Despite a growing literature on the impact of economic nationalism on public attitudes toward foreign direct investment (FDI) inflows, public attitudes toward U.S. FDI outflows have been overlooked. We examine U.S. residents’ attitudes toward FDI outflows to two host countries viewed unfavorably by the American public, Mexico and China, and the extent to which providing accurate information on FDI flows between the United States and these countries affects the biases toward American investment in these countries. Methods We implemented a vignette experiment on respondents from 11 southern states in the United States. Results We find little support for the existence of bias toward Mexico or China as destinations for American investment, nor do we find that providing accurate information on bilateral FDI flows affects perceptions of U.S. FDI outflows to these countries. Instead, individuals' economic self‐interest and sociotropic concerns influence their attitudes toward FDI outflows. Conclusions Individuals' preferences toward U.S. FDI outflows are not shaped by biases toward investment destinations but by their concerns regarding the economic and security consequences of American overseas investment.

Date: 2022
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