This study examines the macro-level factors and microeconomic factors that contribute to the explanation of foreign direct investments in the United States (FDIUS). Prior studies have focused on either macro-level factors or microeconomic factors. Thi...
This study examines the macro-level factors and microeconomic factors that contribute to the explanation of foreign direct investments in the United States (FDIUS). Prior studies have focused on either macro-level factors or microeconomic factors. This paper attempts to develop a multivariate statistical model to accomodate both macro-level and microeconomic factors. Results of analyzing 209 cases over the period from 1987 to 1995 show that FDIUS are made by large size firms coming from politically stable countries that have low industry growth rate and high personal income. The firm is more likely to choose the joint venture form of business to minimize risk.