A Note On "State Characteristics and the Location of Foreign Direct Investment within the United States"

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Abstract
In the November 1991 issue of this Review, Coughlin, Terza, and Arromdee estimated Conditional Logit Models of the factors affecting the locational choices of foreign direct investors (FDI) in the manufacturing sector within the United States. This paper examines the aggregation bias in their paper. We show that marked differences exist between the locational preferences of those investing in new manufacturing plants and those investing in mergers and acquisitions.

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