US is still an attractive FDI destination – Fed paper

Federal Reserve

The slowdown in US foreign direct investment (FDI) in 2017 and 2018 was not due to the country being deemed less attractive because of trade tensions, argues a researcher from the Federal Reserve.

In a research note, Alexandra Tabova attributes the decline in FDI to corporate restructurings and reversing intercompany debt flows effecting the statistical records. Total US FDI fell to $270 billion in 2018, down from close to $500 billion in 2015 and 2016.

The reincorporation of California-based

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