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Economic Commentary

Three Common Misperceptions About Foreign Direct Investment

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The increasing purchase of U.S. assets by foreigners in recent years has been blamed on the currentaccount deficit, has been attributed to the Japanese, and has caused alarm about loss of U.S. economic independence. These three common views are based on misperceptions about the causes, sources, and implications of foreign direct investment.

07.15.1988EC 7/15/1988

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit clevelandfed.org for updates.

Suggested Citation

Anderson, Gerald. 1988. “Three Common Misperceptions About Foreign Direct Investment.” Federal Reserve Bank of Cleveland, Economic Commentary 7/15/1988.

This work by Federal Reserve Bank of Cleveland is licensed under Creative Commons Attribution-NonCommercial 4.0 International