New England's Links to the World Economy
"Openness" to international trade and investment encourages technology transfer and productivity growth. It may also provide a degree of stability in the face of national and regional business cycles. To assess New England's relative openness, this article surveys New England's links with the world economy: its trade in goods and services, its banking ties, its inbound and (to the extent possible) its outbound foreign direct investments.
The author finds evidence that New England's 1987-89 export growth has been slow, and that inbound foreign investment recently has played a below-average role in the regional economy, especially in the manufacturing sector. She suggests that the decline in the region's manufacturing may be adversely affecting its international trade and investment ties. New England remains one of the most open regions in the country, however, and opportunities abound for further expansion of its export activities.
About the Authors
Jane Sneddon Little, Federal Reserve Bank of Boston
Resources
Related Content
Oil and the Macroeconomy in a Changing World: A Conference Summary
A New Vision for Workforce Preparation
Improving High-Skill Immigration Policy for New England: A regional perspective on demand for H-1B visas and an exploration of potential policy improvements
Housing, Place, and Flexible Work: The Future of the New England Economy