EVOLUTION OF INVESTMENT FLOWS IN U.S. MANUFACTURING: A SPATIAL PANEL APPROACH

摘要: The paper starts with a discussion of conceptual model location factors in U.S. manufacturing investment at the state level. purpose is to test relative importance growth influencing and whether or not they have changed over time. These include agglomeration, market structure, labor, infrastructure, fiscal policy. A better understanding flows sector will help determine how time which economic development policies may be most appropriate targeting sector. analysis covers period 1994 2006 for 48 contiguous states, data taken from Annual Survey Manufactures, Bureau Economic Analysis, Labor Statistics. Panel methods are used fixed effects due heterogeneity across states. Spatial panel determination specification spatial temporal effects. Empirical results consistent empirical models put forth. Results suggest that demand remains one important investment. Investment also goes states more productive labor localized agglomeration activity.