Recent Canadian Direct Investment in the United States: An Empirical Perspective from Western New York

A D MacPherson and J E McConnell

Environment and Planning A, 1992, vol. 24, issue 1, 121-136

Abstract: The scale, sectoral composition, and regional economic impact of recent Canadian direct investment in Western New York are examined. Empirical perspectives on the role of the Canada—United States Free Trade Agreement (FTA) are presented, notably with regard to Western New York's growing absorption of Canadian industrial capital. Data from a postal survey of Canadian investors are described. The results suggest that the FTA has not been a strategic factor in recent investment patterns. Instead, the data reveal an important role for locational and market considerations, few of which pertain to official regulations of bilateral commerce. Some of the empirical results suggest an economic synergy between southern Ontario and Western New York. Specifically, both regions appear to have captured significant commercial benefits from recent cross-border investment. The paper concludes with a brief research agenda for future geographical work on the economic impact of more liberal investment relations between the two countries.

Date: 1992
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Persistent link: https://EconPapers.repec.org/RePEc:sae:envira:v:24:y:1992:i:1:p:121-136

DOI: 10.1068/a240121

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