Abstract
This study used a multivariate regression analysis of industry-and firm-specific factors to determine characteristics that lead to manufacturing firms’ foreign direct investment in the United States (FDIUS). Two hundred forty firms were examined (137 investors and 103 noninvestors) from 7 countries in 10 industries during the 1984–1988 period. Firm size and overall profits were positive and significant indicators of FDIUS, but firms’ return on assets was not significant. Three industry-specific variables (prior exports to the United States, industry concentration, and technological intensity) were examined; they were generally positive but insignificant indicators of FDIUS.
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