The determinants of foreign direct investment in United States / Nur Izzati Alias

This paper aims to investigate the determinants that influence the foreign direct investment in United States. The determinants are being measure in order to know whether it affect the amount of the investment. The dependent variable is the inflows of foreign direct investment (FDI) and the independent variables to be used are macroeconomic factors, which are gross domestic product growth rate, openness, inflation rate and interest rate. This study attempts to investigate and examine the performance of foreign direct investment in United States for the period of 1970 until 2015 by using annual basis of time series. The data for each variable will be collected from the World Databank website. Multiple regression analysis will be used to identify the relationships between the dependent variables and independent variables. The result of this paper showed that openness, interest rates and inflation rate are the important determinants that affect the inflows of FDI in United States while GDP growth rates remain insignificant to the inflows of FDI in United States.