Foreign Direct Investment in the United States: An Economic Analysis

Publication Date: August 2008

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Economics

Type:

Abstract:

Foreign direct investment in the United States1 declined sharply after 2000, when a record $300 billion was invested in U.S. businesses and real estate. In 2004, according to preliminary data, foreigners invested about $100 billion. Foreign direct investments are highly sought after by State and local governments that are struggling to create additional jobs in their localities. In addition, many in Congress encourage such investment to offset the perceived negative economic effects of U.S. firms investing abroad. On a cumulative basis, the British remain the largest foreign direct investors in the U.S. economy, with French, Dutch, and Japanese investors trailing behind. This report will be updated as events warrant.