Number: 98-516 Title: FOREIGN INVESTMENT IN THE UNITED STATES: AN ANALYSIS OF ECONOMIC EFFECTS OF STATE INCENTIVES Authors: James K. Jackson, Economics Division Abstract: This report focuses on several topics related to economic and financial incentives state and local governments offer firms, especially foreign firms, to invest in their jurisdictions. It examines empirical research on the role incentives and subsidies play in the decisions of firms to invest abroad and the competition between state and local governments to attract investments. It also examines recent international attempts to address the issue of incentives and subsidies offered by an increasing number of developing countries to attract multinational firms to invest within their borders. Pages: 29 Date: Updated May 26, 1998