000			02427nab a2200253 c 4500
999			_c149959 _d149959
003			ES-MaIEF
005			20241108131343.0
007			ta
008			241107t2024 us ||||| |||| 00| 0 eng d
040			_aES-MaIEF _beng _cES-MaIEF
100			_972092 _aKatitas, Aykan
245	1	2	_aInvestment incentives attract foreign direct investment _bevidence from the great recession _cAycan Katitas, Sonal Pandya
504			_aBibliografía
520			_aDo investment incentives influence private firms’ location decisions? Whereas prior research emphasizes tax incentives, we focus on incentives that require real-time government spending including job training and infrastructure. Real incentives influence where firms invest by resolving costly information asymmetries, and are subject to budget constraints that give rise to political targeting. This paper evaluates how real incentives shape the location decisions of foreign firms, investors who suffer from acute information asymmetries. We leverage features of the Great Recession and the 2009 American Recovery and Reinvestment Act stimulus, which temporarily increased states’ fiscal capacity to fund real incentives. During the narrow stimulus spending window, states that received more federal Medicaid stimulus—instrumented with the exogenous component of the Act’s funding formula—attracted more foreign direct investment (FDI) and increased state spending on real incentives. The stimulus window approximately coincides with FDI’s temporary geographic expansion into US counties that lacked a history of these investments. On average, these counties had narrow vote margins in the prior gubernatorial election and garnered more state real incentive spending. These correlates are pronounced in counties with idle industrial capacity and in states whose governors sought re-election. Tax incentives had no effect on FDI. These findings have important implications for the efficacy of investment incentives and the political economy of industrial policy.
650		4	_943879 _aINVERSIONES EMPRESARIALES
650		4	_947461 _aINCENTIVOS
650		4	_943504 _aEMPRESAS
650		4	_947647 _aLOCALIZACION
650		4	_948060 _aPOLITICA INDUSTRIAL
650		4	_942888 _aESTADOS UNIDOS
700			_972093 _aPandyra, Sonal
773	0		_9172507 _oOP 1443/2024/200/1/2 _tPublic Choice _w(IEF)124378 _x 0048-5829 _g v. 200, n.1-2, july 2024, p.323-345
942			_cART