DETERMINANTS OF INVESTME??T FLOWS IN U.S. MANUFACTURING

Jason Brown, Raymond Florax and Kevin McNamara ()
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Kevin McNamara: Purdue University,Dept. of Agricultural Economics

No 09-10, Working Papers from Purdue University, College of Agriculture, Department of Agricultural Economics

Abstract: The purpose of the paper is to test the long-run steady state of growth factors hypothesized to influence U.S. manufacturing investment flows. These factors include agglomeration, market structure, labor, infrastructure, and fiscal policy. Spatial cross-regressive and spatial Durbin models are used to measure the spatial interaction of investment flows. Spatial spillovers are found to be of a competitive nature at the state level, implying that a factor which attracts more investment to a particular state is associated with lower investments in neighboring states. Investment flows to states with higher market demand, more productive labor, and more localized agglomeration of manufacturing activity.

Keywords: manufacturing; investment; spatial Durbin model (search for similar items in EconPapers)
JEL-codes: L60 R11 R30 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2009
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Citations: View citations in EconPapers (5)

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http://ageconsearch.umn.edu/bitstream/54835/2/09-10.pdf (application/pdf)

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Working Paper: DETERMINANTS OF INVESTMENT FLOWS IN U.S. MANUFACTURING (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:pae:wpaper:09-10

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