0%

1%
2%
3%
4%
5%
6%
1991 2001 2011
US
LOUISVILLE
Share has increased but falls below the U.S.
FDI IN
A JOINT PROJECT OF BROOKINGS AND JPMORGAN CHASE
RANK:
45
23,970
RANK:
59
4.6%
Louisville, KY-IN
RANK:
57
3.7%
WHAT IS FDI?
FDI occurs when a foreign company invests
in a U.S. business enterprise either by
opening a new operation or through a
merger or acquisition. The foreign company
must hold a majority stake in the U.S.
operation for it to be considered "foreign-
owned."
WHY DOES FDI MATTER?
FDI matters because the U.S. operations of
foreign firms contribute inordinately to the
economy. While acounting for only 5
percent of private sector employment, FDI
accounts for:
FDI also facilitates the spread of new
knowledge, technologies, and ideas--flows
critical to innovation and competitiveness in
the global economy. But the magnitude and
nature of FDI differ from place to place.
These profiles analyze how the
characteristics of foreign-owned
establishments (FOEs) and the jobs within
them vary across U.S. states and metro areas.
O
V
E
R
A
L
L
T
R
E
N
D
I
N
D
U
S
T
R
Y
BASIC CHEMICALS 2,300 (9.7%)
MEAT & POULTRY PRODUCTS 1,500 (6.3%)
MOTOR VEHICLE PARTS 1,400 (5.7%)
CEMENT & CONCRETE PRODUCTS 900 (3.7%)
ALUMINUM PRODUCTS 800 (3.2%)
TOP FIVE INDUSTRIES
By jobs in FOEs (pct of total FOE jobs) in 2011
5.0%
6.3%
6.7%
12.0%
15.2%
18.9%
20.3%
Employment
Value Added
Compensation
Productivity Growth
Capital Investment
Corporate R&D
Goods Exports
JOBS IN FOREIGN-OWNED
ESTABLISHMENTS (FOEs)
SHARE OF TOTAL PRIVATE
EMPLOYMENT IN FOEs
2
0
1
1
RANK:
42
16,610 1
9
9
1
2
0
1
1
1
9
9
1
SHARE OF TOTAL
PRIVATE EMPLOYMENT IN FOEs
SHARE OF JOBS IN FOEs NUMBER OF JOBS IN FOEs OPENING
1
2
,
7
0
0

1
1
0

3
,
0
0
0

6
8

1
,
5
0
0

2
6

1
,
0
0
0

1
0

1
,
0
0
0

3
2

4
,
7
0
0

1
9
5

J
O
B
S

I
N

F
O
E
s
E
S
T
A
B
L
I
S
H
M
E
N
T
S
MANUFACTURING WHOLESALE
BUSINESS SUPPORT ACCOMODATION & FOOD
HEALTH CARE REST
DISTRIBUTION OF ESTABLISHMENTS
& JOBS ACROSS SECTORS
By jobs in FOEs & establishments in 2011
TOP FIVE SOURCE COUNTRIES
By jobs in FOEs (pct of total FOE jobs) in 2011
TOP FIVE SOURCE CITY-REGIONS
By jobs in FOEs (pct of total FOE jobs) in 2011
TERMINOLOGY
FDI: Foreign-direct investment
Foreign-Owned Establishments (FOEs):
Single places of business belonging to a
foreign-parent company; e.g. a factory,
warehouse, store, or office
Openings: New physical place of business,
includes new construction (greenfield) and
new occupancy of existing space
M&As: Mergers and acquisitions
City-Region: Subnational administrative
division such as a state, province, or
prefecture, titled by its largest metro
-
2
4
6
8
10
12
14
16
1991 2001 2011
T
H
O
U
S
A
N
D
S
OPENINGS
M&A
By 2011 M&A accounted for 8,500 jobs in FOEs
while openings accounted for 6,300
M
O
D
E

O
F

E
N
T
R
Y
G
L
O
B
A
L

S
O
U
R
C
E
TOKYO, JAPAN 2,000 (8.4%)
PARIS, FRANCE 1,900 (7.8%)
SAO PAULO, BRAZIL 1,600 (6.8%)
LONDON, ENGLAND 1,400 (5.9%)
MILAN, ITALY 1,100 (4.7%)
JAPAN 3,200 (13.3%)
ENGLAND 2,800 (11.6%)
GERMANY 2,400 (10%)
FRANCE 1,900 (7.8%)
CANADA 1,700 (7%)
NOTES
Metro profiles rank the largest 100
metropolitan areas by population
State profiles rank across all states plus the
District of Columbia
All changes in reported jobs in foreign-
owned establishments include both net jobs
created or lost plus transfers of existing jobs
from US to foreign-ownership through M&As,
thus it is possible for the number of jobs
under foreign-ownership to increase without
net job creation taking place
The mode of entry of all establishments
that arrived prior to 1991 is unknown, which
is the first year in the database
Methodological details of this database are
described in an accompanying appendix
available on the report website
Data source: Brookings analysis of the
National Establishment Time Series, Bureau of
Economic Analysis Financial & Operating
statistics, Dun & Bradstreet, and Moody's
Analytics data
MORE INFORMATION
REPORT: FDI in U.S. Metro Areas: The
Geography of Jobs in Foreign-Owned
Establishments
WEB: BROOKINGS.EDU/METROFDI
TWITTER: #METROFDI
42%
26%
32%
38%
26%
35%
FOEs that existed prior to 1991 accounted for
the largest share of jobs in 2011
LOUISVILLE
US
M&A SINCE
1991
OPENINGS
SINCE 1991
PRE-1991
SHARE OF JOBS IN FOEs
BY MODE OF ENTRY
NUMBER OF JOBS IN FOEs OPENING
AFTER OR ACQUIRED SINCE 1991