Recent Canadian direct investment in the United States: an empirical perspective from western New York

The scale, sectoral composition, and regional economic impact of recent Canadian direct investment in western New York are examined. Empirical perspectives on the role of the Canada-US Free Trade Agreement (FTA) are presented, notably with regard to western New York's growing absorption of Canadian industrial capital. Data from a postal survey of Canadian investors are described. The results suggest that the FTA has not been a strategic factor in recent investment patterns. Instead, the data reveal an important role for locational and market considerations, few of which pertain to official regulations of bilateral commerce. Some of the empirical results suggest an economic synergy between southern Ontario and western New York. -from Authors