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FDI Attraction in the States: An Analysis of Governors' Power, Trade Missions, and States' International Offices
Unformatted Document Text:  McMillan 1 A BSTRACT In the global economy, states work to attract foreign direct investment (FDI). Although scholars have analyzed economic development, the strategies states use to lure international investment are rarely examined. This paper considers the role of states’ international offices and governor- led missions overseas as well as the effects of varying degrees of governors’ personal and institutional powers. Gubernatorial power needs to be reconceptualized relative to governors’ international and economic roles. This study finds that states’ international offices and governors’ institutional powers are most beneficial to states’ ability to attract FDI and that governor-led trade missions generally hurt FDI attraction. Governors’ personal powers also negatively affect FDI, but not at a statistically significant level. Therefore, increasing governors’ institutional powers and authority over economic development may benefit states, perhaps allowing various agencies to operate under a unified strategy to attract FDI.

Authors: McMillan, Samuel Lucas.
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background image
McMillan 1
A
BSTRACT
In the global economy, states work to attract foreign direct investment (FDI). Although scholars
have analyzed economic development, the strategies states use to lure international investment
are rarely examined. This paper considers the role of states’ international offices and governor-
led missions overseas as well as the effects of varying degrees of governors’ personal and
institutional powers. Gubernatorial power needs to be reconceptualized relative to governors’
international and economic roles. This study finds that states’ international offices and
governors’ institutional powers are most beneficial to states’ ability to attract FDI and that
governor-led trade missions generally hurt FDI attraction. Governors’ personal powers also
negatively affect FDI, but not at a statistically significant level. Therefore, increasing governors’
institutional powers and authority over economic development may benefit states, perhaps
allowing various agencies to operate under a unified strategy to attract FDI.


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