Determinants of Investment Flows in U.S. Manufacturing
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作者:
Brown, Jason P.
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USDA, Farm & Rural Household Well Being Branch, Resource & Rural Econ Div, ERS, Washington, DC 20036 USAUSDA, Farm & Rural Household Well Being Branch, Resource & Rural Econ Div, ERS, Washington, DC 20036 USA
Brown, Jason P.
[1
]
Florax, Raymond J. G. M.
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机构:
Purdue Univ, Agr Econ, W Lafayette, IN 47907 USA
Free Univ Amsterdam, Spatial Econ, Amsterdam, NetherlandsUSDA, Farm & Rural Household Well Being Branch, Resource & Rural Econ Div, ERS, Washington, DC 20036 USA
Florax, Raymond J. G. M.
[2
,3
]
McNamara, Kevin T.
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Purdue Univ, Agr Econ, W Lafayette, IN 47907 USAUSDA, Farm & Rural Household Well Being Branch, Resource & Rural Econ Div, ERS, Washington, DC 20036 USA
McNamara, Kevin T.
[2
]
机构:
[1] USDA, Farm & Rural Household Well Being Branch, Resource & Rural Econ Div, ERS, Washington, DC 20036 USA
[2] Purdue Univ, Agr Econ, W Lafayette, IN 47907 USA
The purpose of the paper is to test the long-run steady state of growth factors hypothesized to influence U.S. manufacturing investment flows. These factors include agglomeration, market structure, labor, infrastructure, and fiscal policy. Spatial cross-regressive and spatial Durbin models are used to measure the spatial interaction of investment flows. Spatial spillovers are found to be of a competitive nature at the state level, implying that a factor which attracts more investment to a particular state is associated with lower investments in neighboring states. Investment flows to states with higher market demand, more productive labor, and more localized agglomeration of manufacturing activity.