Title: A Quantitative Analysis of Determinants of Inward Foreign Direct Investment to the United States
Author(s) : Rocco Lueck
This study uses a multiple linear regression model to analyze the determinants of foreign direct investment to the United States and to determine whether any multicollinearity exists. The research uses inward foreign direct investment data from 1997-2019 gathered from the Bureau of Economic Analysis. There are four predictor variables that were analyzed: gross domestic product, education, and value-added production, and labor compensation. The hypothesis is that there is a statistical correlation between gross domestic product, education, value-added production, and labor compensation and inward foreign direct investment to the United States. The findings of the regression analysis indicated with a p value of p<.0001 that a strong statistical correlation exists. The null hypothesis was able to be rejected based on these results.