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Regions, Globalization, and the Knowledge-Based Economy$
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John H. Dunning

Print publication date: 2002

Print ISBN-13: 9780199250011

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0199250014.001.0001

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Regional Integration: NAFTA and the Reconfiguration of North American Industry

Regional Integration: NAFTA and the Reconfiguration of North American Industry

(p.170) 7 Regional Integration: NAFTA and the Reconfiguration of North American Industry
Regions, Globalization, and the Knowledge-Based Economy

Lorraine Eden (Contributor Webpage)

Antoine Monteils

Oxford University Press

The impacts of regional integration on firm location strategies post‐1989 in North America are investigated using three different data sets. First, World Investment Report data (UNCTAD, 1998) show changes in the stock of North American inward and outward foreign direct investment (FDI) over the 1985–97 period. Second, two‐way FDI stock data from the OECD (1997) provide a snapshot of intraregional and extraregional North American integration in 1989 and 1994. Third, using US inward FDI data for the 1989–94 period, investment patterns are compared of insider firms (Canada and Mexico) with outsider firms (all others) along four dimensions: timing of FDI, mode of entry, state location, and industry choice. Since NAFTA (North American Free Trade Agreement) took effect on 1 January 1994, the data should be seen as more reflective of the Canada–US Free Trade Agreement, but some interesting patterns of responses to regional integration are found that suggest the regional integration process in North America is significantly affecting plant location decisions.

Keywords:   Canada–US Free Trade Agreement, firms, foreign direct investment, geographical distribution, location, NAFTA, North America, North American Free Trade Agreement, regional integration

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