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How will the Change of the U.S. Immigration politics and Increased Immigrant Populations affect the Foreign Direct Investment Inflows?

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Abstract:

When the U.S. government is eager to attract foreign firms, what are the factors that increase FDI inflows into the U.S.? Stringent labor protection and higher labor costs in host countries may be perceived as a negative operating condition for foreign firms. For manufacturing in particular, labor costs could be an important factor in determining the FDI inflow in the host countries. This implies that foreign firms are sensitive to the flexibility of the labor market in the U.S. The U.S. has experienced increasing immigrants, which have preserved the stable labor supply in the U.S. market. The U.S. is a good case to test the relationship between immigration and FDI because the U.S. is not only the most host and home country of FDI, but also the country that has one of the highest immigrant populations and suffers from some of the highest labor costs. My research suggests that the expansive immigration policy and larger number of immigrants in the U.S. are important determinants that increase FDI inflows. This research, therefore, deals with the amounts of foreign firms investment into the U.S. over times. I argue that the effect of immigration, including both legal immigrants and workable nonimmigrants, and flexible national immigration policy lowers the risk of firms higher investment. I conduct time-series analysis on the period between 1970 and 2005. I conclude that increasing immigrantion population and the expansive immigration policy increase FDI inflows in the U.S.

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fdi (16), immigr (14), u.s (12), inflow (9), foreign (8), labor (7), countri (7), invest (6), increas (6), firm (5), determin (5), govern (4), polici (4), studi (4), popul (4), polit (4), host (4), time (3), focus (3), cost (3), direct (3),
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Name: Southern Political Science Association
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SHIN, GEIGUEN. "How will the Change of the U.S. Immigration politics and Increased Immigrant Populations affect the Foreign Direct Investment Inflows?" Paper presented at the annual meeting of the Southern Political Science Association, Hotel Intercontinental, New Orleans, LA, Jan 07, 2009 <Not Available>. 2009-11-04 <http://www.allacademic.com/meta/p282838_index.html>

APA Citation:

SHIN, G. , 2009-01-07 "How will the Change of the U.S. Immigration politics and Increased Immigrant Populations affect the Foreign Direct Investment Inflows?" Paper presented at the annual meeting of the Southern Political Science Association, Hotel Intercontinental, New Orleans, LA Online <APPLICATION/PDF>. 2009-11-04 from http://www.allacademic.com/meta/p282838_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: When the U.S. government is eager to attract foreign firms, what are the factors that increase FDI inflows into the U.S.? Stringent labor protection and higher labor costs in host countries may be perceived as a negative operating condition for foreign firms. For manufacturing in particular, labor costs could be an important factor in determining the FDI inflow in the host countries. This implies that foreign firms are sensitive to the flexibility of the labor market in the U.S. The U.S. has experienced increasing immigrants, which have preserved the stable labor supply in the U.S. market. The U.S. is a good case to test the relationship between immigration and FDI because the U.S. is not only the most host and home country of FDI, but also the country that has one of the highest immigrant populations and suffers from some of the highest labor costs. My research suggests that the expansive immigration policy and larger number of immigrants in the U.S. are important determinants that increase FDI inflows. This research, therefore, deals with the amounts of foreign firms investment into the U.S. over times. I argue that the effect of immigration, including both legal immigrants and workable nonimmigrants, and flexible national immigration policy lowers the risk of firms higher investment. I conduct time-series analysis on the period between 1970 and 2005. I conclude that increasing immigrantion population and the expansive immigration policy increase FDI inflows in the U.S.

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Document Type: application/pdf
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Word count: 499
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How will the Change of the U.S. Immigration politics and Increased Immigrant Populations affect the Foreign Direct Investment Inflows? ∗ Charlie-GeiGuen Shin Department of Political Science University of Missouri-Columbia Columbia MO 65211 Phone: 573-356-1868 Email: GShin@mizzou.edu Proposal Foreign direct investment (FDI) has become a major focus for Americans. In particular “foreign investment inflows balance the deficit in their export-import account which could result from a lack of private and government saving or government deficits” (Ondrich and Wasylenko 1993). When
times. I argue that the effect of immigration including both legal immigrants and workable nonimmigrants and flexible national immigration policy lowers the risk of firms’ higher investment. I first overview the immigration-FDI literature with an emphasis on the labor market in the U.S. The following section outlines the theoretical assumptions and expectations based on Ricardian model with regard to the relationship of the immigration and FDI. After describing the research design I present the result of time-series analysis for


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