A Forecast Model of Foreign Direct Investment in the United States Patrick Manchester Duquesne University April 2006 With the rise of the East Asian economies and the continuing prominence of the European Monetary Union, one of the principal concerns of future American economic growth is the degree to which foreign investment will continue to support the United States economy. In this paper, I develop a forecast model that predicts the expected future value of foreign direct investment in the United States. I use the results of this analysis to analyze the factors that affect foreign direct investment, as well as to assess future trends in foreign investment in the United States. Moreover, I use the results to analyze the implications of foreign direct investment in the United States on government fiscal and monetary policy.
A Forecast Model of Foreign Direct Investment in the United States Patrick Manchester Duquesne University April 2006 With the rise of the East Asian economies and the continuing prominence of the European Monetary Union, one of the principal concerns of future American economic growth is the degree to which foreign investment will continue to support the United States economy. In this paper, I develop a forecast model that predicts the expected future value of foreign direct investment in the United States. I use the results of this analysis to analyze the factors that affect foreign direct investment, as well as to assess future trends in foreign investment in the United States. Moreover, I use the results to analyze the implications of foreign direct investment in the United States on government fiscal and monetary policy.