Journal Article

The trade balance effects of foreign direct investment in U.S. manufacturing

Abstract: With the rise in foreign direct investment in U.S. manufacturing during the 1980s, the affiliates of foreign multinationals have become potentially important sources of improved U.S. international competitiveness. This article describes the growing foreign presence in the U.S. manufacturing sector and identifies the channels through which foreign investment is most likely to influence exports and imports. The author presents estimates of the long-term trade balance effects of increased foreign ownership of U.S. manufacturing firms.

Keywords: Investments, Foreign - United States; Manufactures; Balance of trade;

Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Quarterly Review

Publication Date: 1991

Volume: 16

Issue: Sum

Pages: 63-76