CANADIAN DIRECT-INVESTMENT IN THE UNITED-STATES - AN OHIO PERSPECTIVE

This analysis focuses on the direct investment behavior of small Canad ian manufacturing firms in the heavily industrialized state of Ohio. H ypotheses were developed regarding the push and pull factors in foreig n direct investment in Ohio. Two types of analyses were conducted: a s urvey of Canadian firms and a logit regression on financial and locati onal characteristics of a set of Canadian manufacturing firms. The res ults suggest that the leading factors affecting the probability that a Canadian firm will invest in Ohio are the nature of the industry, the proximity of the parent firm, and the size of the firm. The implicati ons of NAFTA are also discussed.