# Presentation: 257763

## Overview of BEA’s State-level Data on Foreign Direct Investment in the United States

**Daniel R. Yorgason**
*Understanding Regional Economic Data *
*for Policy and Planning*
- BEA/ACCRA	Dallas, Texas—September 8, 2006

## BEA’s regional direct investment data

- Introduction
- Direct investment definition
- 10% ownership threshold (compare portfolio)
- BEA data often focus on more than 50% (controlling) ownership cases (esp. post-2002)
- Reasons for interest in direct investment data
- Foreign ownership of assets in the U.S.
- Globalization
- Wages, offshoring, etc.

## BEA’s regional direct investment data

- Uses of regional direct investment data
- Determining extent of “globalization” of local economy
- Analyzing effects on employment, economic growth, technology and competitiveness
- Assessing effectiveness of targeted local and regional policies
- Tax incentives
- Promotional missions

## BEA’s regional direct investment data

- Overview of direct investment
- Two types of investment
- Inward (Foreign direct investment in the United States)
- Outward (U.S. direct investment abroad)
- Two types of surveys
- Balance of payments surveys
- Financial and operating surveys
- Benchmark and annual

## Regional data availability

- Inward financial and operating data items available by state (and country or industry)
- Number of employees
- Total
- Manufacturing
- Gross book value of property, plant, and equipment
- Gross book value of commercial property

## Regional data availability

- Link with Census Bureau
- Sources
- BEA’s benchmark inward financial and operating survey
- Census’ Economic Census
- Census’ Business Register
- Items available by state (and country and/or industry)
- Number of establishments
- Number of employees
- Payroll
- Shipments
- Value added in manufacturing
- State only items for manufacturing establishments
- e.g., wages, hours, capital spending, inventories

**Notes:**
Other items in manufacturing: wages, hours worked, cost of materials, PPE spending, inventories, GBV of depreciable assets

## Comparison of available data

| Issue | BEA financial and operating survey | Data link with Census Bureau |
| --- | --- | --- |
| Timeliness (most recent) | 2004 | 1997 (2002 out by end of year) |
| Frequency | Annual | Once every five years |
| Responding unit | Enterprise | Establishment |
| Industry detail | 9 industries | Roughly 500 industries |

**Notes:**
Over 650 for Alaska

## Accessing data

- Website – _www.bea.gov_
- Interactive data
- Time series capability, key item availability
- “Selected” tables
- Current, high interest tables
- Comprehensive sets of tables (zip files)
- PDF or Excel
- Publications
***Survey of Current Business*** (e.g., August 2006 –Anderson, Zeile)
- Data publications now primarily PDF (hard copy for benchmark surveys)

## Interactive data from BEA 

## Interactive data from BEA

## Interactive data from BEA

## Interactive data from BEA

**Interactive data from BEA**

## Interactive data from BEA

## Interactive data from BEA

## Interactive data from BEA

## Interactive data from BEA

## Interactive data from BEA

## Interactive data from BEA

## Interactive data from BEA

## Interactive data from BEA

- Texas

**Notes:**
Find out why employment declined after 2000

## Interactive data from BEA

**Notes:**
Fell from 384,900 in 2000 to 340,3000 in 2003 (rose slightly in 2004).  The drop was quicker and slightly larger than an all U.S. lost from 2000 to 2004.  Industry:  manufacturing 2/3 of drop, information 1/3 of drop.  Country:  Canada 5/9, Europe 1/3, Asia and Pacific 2/9.  These are very rough estimates as detailed tabulations (state by country or industry) were for all affiliates in 2000-2001 and for MOUSAs in 2002-2004.

## Selected tables from BEA 

## Selected tables from BEA

## Selected tables from BEA

## Selected tables from BEA

**Notes:**
Define UBO In these selected tables, more countries shown than in other standard tables, e.g., Italy, Sweden

## Direct investment share of employment, 2004

**Direct investment share of employment, 2004**

## Direct investment share of employment, 2004

**Direct investment share of employment, 2004**

- Texas and neighbors

## Direct investment share of employment, 2004

| Top 5 states |  |  |  | Texas region states |  |  |
| --- | --- | --- | --- | --- | --- | --- |
| Rank | State | Share |  | Rank | State | Share |
| 1 | South Carolina | 7.9% |  | 26 | Texas | 4.2% |
| 2 | New Hampshire | 7.4% |  | 38 | Arkansas | 3.2% |
| 3 | Connecticut | 7.1% |  | 39 | Louisiana | 3.1% |
| 4 | Delaware | 7.0% |  | 44 | Oklahoma | 2.7% |
| 5 | Hawaii | 6.6% |  | 48 | New Mexico | 2.1% |

**Direct investment share of employment, 2004**

****** ***August 2006 ***Survey of Current Business ******

| Top 5 states |  |  |  | Texas and neighbors |  |  |
| --- | --- | --- | --- | --- | --- | --- |
| Rank | State | Share |  | Rank | State | Share |
| 1 | South Carolina | 7.9% |  | 26 | Texas | 4.2% |
| 2 | New Hampshire | 7.4% |  | 38 | Arkansas | 3.2% |
| 3 | Connecticut | 7.1% |  | 39 | Louisiana | 3.1% |
| 4 | Delaware | 7.0% |  | 44 | Oklahoma | 2.7% |
| 5 | Hawaii | 6.6% |  | 48 | New Mexico | 2.1% |

**Notes:**
U.S. average is 4.5%  The employment totals in the denominator do not include proprietors employment, government employment, and private household employment.  Overall for Texas neighbors is 2.9%.  Overall for Texas region is 3.8%

| Top source countries for Texas |  |  |  |
| --- | --- | --- | --- |
| Rank | Source country | Share | Ratio:  share relative to all-U.S. share |
| 1 | United Kingdom | 0.91% | 112% |
| 2 | France | 0.46% | 114% |
| 3 | Netherlands | 0.43% | 101% |
| -- | Latin America & Other WH | 0.56% | 193% |
| -- | Mexico | 0.15% | 321% |

| Top source countries for Texas |  |  |  |
| --- | --- | --- | --- |
| Rank | Source country | Share | Ratio:  share relative to all-U.S. share |
| 1 | United Kingdom | 0.91% | 112% |
| 2 | France | 0.46% | 114% |
| 3 | Netherlands | 0.43% | 101% |
| -- | Latin America & Other WH | 0.56% | 193% |
| -- | Mexico | 0.15% | 321% |

**Direct investment share of employment, 2004**

| Top source countries for Texas |  |  |  |
| --- | --- | --- | --- |
| Rank | Source country | Share | Ratio:  share relative to all-U.S. share |
| 1 | United Kingdom | 0.91% | 112% |
| 2 | France | 0.46% | 114% |
| 3 | Netherlands | 0.43% | 101% |
| -- | Latin America & Other WH | 0.56% | 193% |
| -- | Mexico | 0.15% | 321% |

| Top source countries for Texas’ neighbors |  |  |  |
| --- | --- | --- | --- |
| Rank | Source country | Share | Ratio:  share relative to all-U.S. share |
| 1 | United Kingdom | 0.46% | 112% |
| 2 | France | 0.36% | 114% |
| 3 | Germany | 0.30% | 101% |
| -- | Latin America & Other WH | 0.34% | 117% |
| -- | Mexico | 0.02% | 40% |

| Top source countries for Texas’ neighbors |  |  |  |
| --- | --- | --- | --- |
| Rank | Source country | Share | Ratio:  share relative to all-U.S. share |
| 1 | United Kingdom | 0.46% | 112% |
| 2 | France | 0.36% | 114% |
| 3 | Germany | 0.30% | 101% |
| -- | Latin America & Other WH | 0.34% | 117% |
| -- | Mexico | 0.02% | 40% |

**Direct investment share of employment, 2004**

| Top source countries for Texas’ neighbors |  |  |  |
| --- | --- | --- | --- |
| Rank | Source country | Share | Ratio:  share relative to all-U.S. share |
| 1 | United Kingdom | 0.46% | 112% |
| 2 | France | 0.36% | 114% |
| 3 | Germany | 0.30% | 101% |
| -- | Latin America & Other WH | 0.34% | 117% |
| -- | Mexico | 0.02% | 40% |

## Direct investment share of employment, 2004

| Top 4 states |  |  |  | Other Texas neighbors |  |  |
| --- | --- | --- | --- | --- | --- | --- |
| Rank | State | Share |  | Rank | State | Share |
| 1 | North Dakota | 0.66% |  | 12 | Oklahoma | 0.36% |
| 2 | Wyoming | 0.56% |  | 39 | New Mexico | 0.13% |
| 3 | Texas | 0.56% |  | 40 | Arkansas | 0.13% |
| 4 | Louisiana | 0.53% |  | -- | U.S. w/o Texas and neighbors | 0.28% |

| Top 4 states |  |  |  | Other Texas neighbors |  |  |
| --- | --- | --- | --- | --- | --- | --- |
| Rank | State | Share |  | Rank | State | Share |
| 1 | North Dakota | 0.66% |  | 12 | Oklahoma | 0.36% |
| 2 | Wyoming | 0.56% |  | 39 | New Mexico | 0.13% |
| 3 | Texas | 0.56% |  | 40 | Arkansas | 0.13% |
| 4 | Louisiana | 0.53% |  | -- | U.S. w/o Texas and neighbors | 0.28% |

**Direct investment share of employment, 2004**

- Latin America & Other Western Hemisphere

| Top 4 states |  |  |  | Other Texas neighbors |  |  |
| --- | --- | --- | --- | --- | --- | --- |
| Rank | State | Share |  | Rank | State | Share |
| 1 | North Dakota | 0.66% |  | 12 | Oklahoma | 0.36% |
| 2 | Wyoming | 0.56% |  | 39 | New Mexico | 0.13% |
| 3 | Texas | 0.56% |  | 40 | Arkansas | 0.13% |
| 4 | Louisiana | 0.53% |  | -- | U.S. w/o Texas and neighbors | 0.28% |

## BEA-Census link data 

## BEA-Census link data

## BEA-Census link data

## BEA-Census link data

## BEA-Census link data

## BEA-Census link data

## Detailed industry data

- Texas non-manufacturing tables, 1997

- 250 to 499

## Detailed industry data

- Texas manufacturing tables, 1997

## Detailed industry data

- Texas manufacturing, UK ownership,1997

## Detailed industry data

- Texas manufacturing, UK ownership,1997 Top 5 industries

## Other regional data

- Direct investment
***Survey of Current Business*** article (May 1999) by Shannon, Zeile, Johnson
- “Regional Patterns in the Location of Foreign-Owned Manufacturing Establishments”
- Inward manufacturing at sub-state level
- One-time study
- Link with Census/National Science Foundation
- R&D spending by state
- Will be produced for first time using 2004 data

**Notes:**
NSF link – feasibility study has been done, some data (but not by state) are on our website, no set time for producing first output, periodicity has yet to be determined

## Direct investment share of employment, 1992

- Manufacturing establishments

- May 1999
***Survey of ***
***Current ***
***Business***

**Notes:**
In 1992, Dallas-Fort Worth area was 10th in manufacturing employment in foreign owned establishments (and 9th in overall population

## Other regional data

- International trade
- Produced by Census Bureau
- Some data freely available
- e.g., State export data for recent years, Gulf ports data in wake of Katrina
- www.census.gov/foreign-trade/www/index.html
- Some data available at a charge
- Detailed state data
- Detailed port data
- www.usatradeonline.gov/
- www.census.gov/foreign-trade/reference/products/catalog/elec.html

**Notes:**
USA Trade Online is a collaboration between STAT-USA (DOC) and the Foreign Trade Division of Census

## Census Bureau trade data

## Census Bureau trade data

## Contact

**Dan Yorgason**
- 	Economist, Research Branch
- 	International Investment Division
- 	Bureau of Economic Analysis
**dan.yorgason@bea.gov**
**202-606-9804**