New challenges and opportunities prompted the Partnership for New York City to revisit and update its study of FDI impact on the local economy that was initially published in 2008. For this new report, the Partnership has joined with global consulting firm A.T. Kearney to conduct interviews, research and analysis in order to assess the current status and future trends for FDI in New York.
New York City has reached historic levels of jobs and economic activity, thanks to its status as a global center of finance, commerce and innovation. In an era of rapid globalization, New York’s success would not be possible without the contributions of more than 5,000 foreign companies that have their U.S. headquarters and significant business operations in the city. However, more restrictive federal immigration policies, “America First” procurement and trade policies, high corporate and personal tax rates and New York’s aging transportation infrastructure could discourage FDI.
of New York City's GDP is generated by FDI.
New York City workers are employed by foreign companies.
Competing for FDI
New York City receives more FDI than any other U.S. city, but it trails international competitors.
Federal Policy Impacts on FDI
Ultimately, restrictions of trade will result in slower longterm growth of FDI. A sustained tightening of immigration, including the travel ban and more restrictions on high- and low-skilled workers, would reduce FDI below baseline projections.
New York should be able to exceed FDI growth projections beyond the 248,000 jobs projected for the city and state. City and state economic development agencies have an opportunity to expand and accelerate FDI beyond the baseline projections.
Workforce development, education and immigration policies are rapidly changing and require a coordinated response by the public and private sectors to maintain the quality and diversity of the labor pool.
Interviews for this study consistently cited the need for a single point of contact or a clearinghouse that can help foreign companies navigate the challenges of moving to or expanding in New York.