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

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

Kategori
Vitenskapelig artikkel
Sammendrag
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.
Språk
Engelsk
Forfatter(e)
Institusjon(er)
  • SINTEF Digital / Helse
  • Norges teknisk-naturvitenskapelige universitet
År
Publisert i
International Interactions
ISSN
0305-0629
Forlag
Taylor & Francis
Årgang
39
Hefte nr.
2
Side(r)
167 - 191