US is still an attractive FDI destination – Fed paper

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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