FDI makes comeback after 'Great Recession'

A recently released IU report indicates foreign direct investment has made a comeback after suffering from the effects generated by the “Great Recession,” according to a press release.
 
“The financial crisis or ‘Great Recession’ in 2008 certainly hindered foreign investment, due to the financial resource constraints as well as the uncertainty created by the crisis,” Timothy Slaper, director of economic analysis at the Indiana Business Research Center in IU’s Kelley School of Business, said in the release. “Fortunately, the majority of FDI activity rebounded nicely.”

The report “Capturing the Flag 2013: Foreign Direct Investment in Indiana,” which looks at both historical and anticipated FDI performance, is available on the IBRC’s website, according to the release.

133,600 Hoosiers were employed at majority-owned U.S. affiliate employers in 2010, according to the release. This represents a 1.7 percent increase from the year before, placing Indiana 14th nationally. MOUSA employment accounts for about 5.7 percent of state employment at private firms, according to the release.

“Between 2008 and 2010, nearly all Midwestern states experienced a sharper decline in MOUSA employment than the U.S.,” the report said, according to the release. “Among all Midwestern states, Indiana experienced the smallest decline in MOUSA employment (-4.8 percent) followed by Michigan and Kentucky (-5.7 percent).”

Wholesale trade and information were two other industries in the state where MOUSA employment exceeded that of the nation, according to the release.

Honda, Fiat and Teleperformance USA are the three companies expected to create 2,450 jobs, or 20 percent of all FDI-announced jobs between 2010 and 2012 in Indiana, according to the release.

Manufacturing remained the most popular business activity for foreign investment in Indiana, according to the release. It comprises 74 percent of all expected jobs compared to 44.8 percent nationally, according to the release.

– Makenzie Holland