Foreign Direct Investment
Column Published in syndication June 26, 2024Investments in the United States by companies from other countries is a significant, though often overlooked, source of economic activity and expansion. Foreign direct investment (FDI) enhances US productivity growth, increases export volumes, and creates high-paying jobs for American workers. Foreign-owned business operations in the United States account for about 7.9 million direct jobs (many more when spillover effects are included) in a wide variety of industries, as well as substantial research and development expenditures. These companies also account for about 23% of US exports.