TY  - JOUR
AU  - Head,Keith
AU  - Ries,John C.
AU  - Swenson,Deborah L.
TI  - The Attraction of Foreign Manufacturing Investments: Investment Promotion and Agglomeration Economies
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4878
PY  - 1994
Y2  - October 1994
UR  - http://www.nber.org/papers/w4878
L1  - http://www.nber.org/papers/w4878.pdf
N1  - Author contact info:
Keith Head
Sauder School of Business, UBC
2053 Main Mall
Vancouver, BC  V6T 1Z2
CANADA
Tel: 6048228492
Fax: 6048228477
E-Mail: keith.head@commerce.ubc.ca

John Ries
University of British Columbia
Faculty of Commerce
2053 Main Mall
Vancouver, BC  V6T1Z2, Canada
Tel: 604-224-8493
E-Mail: john.ries@sauder.ubc.ca

Deborah L. Swenson
Department of Economics
University of California, Davis
Davis, CA 95616
Tel: 530/752-1569
Fax: 530/752-9382
E-Mail: deswenson@ucdavis.edu
AB  - We study Japanese investments between 1980 and 1992 to assess the effectiveness of state promotion efforts in light of strong agglomeration economies in Japanese investment.  Two policy variables are consistently shown to influence the location of investment - foreign trade zones and labor subsidies.  We use simulations to explore the impact these policies had on the geographic distribution of Japanese investment.  The simulations reveal that in aggregate promotion programs largely offset each other; however, unilateral withdrawal of promotion causes individual states to lose substantial amounts of foreign investment.
ER  -