My original motivation for selecting this topic for my Croft thesis was to examine an issue that is of community relevance in Mississippi and could reveal how multiple global regions intersect and affect the quality of life in Mississippi. Guided by this motivation, I decided to examine whether the expected effects of Japanese FDI projects in Mississippi have been achieved in terms of job creation relative to both job quantity and job quality. My particular analytical focus has been on the job-creation effects of the Nissan plant in Canton and the Toyota plant in Blue Springs. For my analysis, I used publically-available county level data that I sourced from the Bureau of Labor Statistics with the objective of comparing the employment levels and average annual wages in the counties where the plants are located before and after their openings. I found that direct job creation from the plants was properly estimated, while indirect job creation was overestimated. This has contributed to a lower net employment effect than projected, although the two plants have created higher paying jobs in the counties where they are located. Other research has found that investment in human and physical capital is a more effective way of increasing employment than paying incentives to attract firms. Therefore, to ensure that future foreign direct investment creates stable, quality jobs, the Mississippi state government should balance its investments in education and infrastructure with incentives designed to attract foreign investments from diverse industries.
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