Kudrle, Robert T.2019-08-142019-08-142000B1018https://hdl.handle.net/11299/205555This report presents the results of a study conducted by the Freeman Center for International Economic Policy at the University of Minnesota, investigating how well Minnesota has fared in attracting foreign direct investment (FDI) compared with the other forty-seven contiguous states in the United States. Based on Bureau of Economic Analysis and International Trade Administration data for the year 1996, the study evaluated the significance of various state-level determinants of FDI, including gross state product, geographic location, economic structure, workforce unionization rate, and corporate income tax rate. Using employment figures as the primary measure of investment, the author measured Minnesota's FDI performance both for aggregate levels of investment, and for eight individual investment sectors: manufacturing, retail trade, wholesale trade, finance, insurance, real estate, services, and other unclassified industries (agriculture, forestry, fishing, mining, construction, transportation, communication, and public utilities). The author found that a state's overall size and the existing structure of its economy were both significant factors in determining a state's FDI performance. Based on these results, he concludes that Minnesota should pursue and indirect approach to foreign direct investment policy by establishing a favorable climate for the attraction, retention, and growth of economnic activities that it regards as otherwise desirable.endirect investmentforeign investmentindustryMinnesotamultinational corporationstradeReport