FOREIGN DIRECT-INVESTMENT AND STATE EXPORT PERFORMANCE

Since the early 1980s, there has been widespread debate over the impac ts of rising levels of inward foreign direct investment (FDI) on the U .S. economy. A frequently noted, but little studied, issue within the debate is the impact of FDI on U.S. foreign trade, and particularly, o n the foreign trade of U.S. regions. This study assesses the effects o f FDI on the manufacturing export performance of U.S. states during th e period from 1980 to 1991. Results indicate that increased levels of FDI are positively related to future improvements in state manufacturi ng export performance.