Democrats, Republicans—or Both? An Empirical Analysis of the Effects of the Composition of State Governments on FDI, 1977--2004

Thomas Halvorsen and Jo Jakobsen

International Interactions, 2013, vol. 39, issue 2, 167-191

Abstract: Does the partisan composition of state governments in the United States influence the location decisions of foreign multinational companies? This article argues that it does. We contend that partisan differences over state economic development policies still exist. Whereas Republicans tend to prefer an investment-driven (supply-side) growth model, Democrats favor a consumption-driven (demand-side) path to growth. Both sets of policies are of value to foreign direct investment; thus, multinationals do not favor one party over the other. A useful blend of policy measures is sought by foreign firms, making split state government preferable over unified government. Our arguments are comprehensively tested in a time-series cross-section analysis covering the period 1977--2004, with results supporting our claims.

Date: 2013
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1080/03050629.2013.768470 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:ginixx:v:39:y:2013:i:2:p:167-191

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/GINI20

DOI: 10.1080/03050629.2013.768470

Access Statistics for this article

International Interactions is currently edited by Michael Colaresi and Gerald Schneider

More articles in International Interactions from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().