Da. Gerlowski et al., THE LOCATION OF FOREIGN DIRECT-INVESTMENT FOR UNITED-STATES REAL-ESTATE - AN EMPIRICAL-ANALYSIS, Land economics, 70(3), 1994, pp. 286-293
Based on site characteristics, this study examines the location prefer
ences of investors from Canada, Japan, and the United Kingdom for U.S.
real estate. The analysis uses the state as the unit of observation f
or the 1980-1989 period. Using a random effects model that pools time-
series and cross-sectional data, we identify important factors that ex
plain foreign investors' real property location choice in the U.S. For
eigners prefer states with large, developed, and active economies. Int
erestingly, a broad measure of the state taxation variable is found to
be negative and significant, suggesting that taxation is a deterrent
to foreign investors.