Posted by Nathan Book
Foreign direct investment (FDI) refers to investments made by companies or individuals of one country into business interests in another country. This can include opening new facilities, acquiring existing businesses, or reinvesting earnings from foreign operations, all of which serve the purpose of establishing a lasting interest in the management of the foreign enterprise. FDI not only benefits the investor, providing access to new markets, lower costs, and increased profits, but also stimulates economic development in the host country, bringing in capital, technology, and access to global markets while simultaneously creating new jobs.
Consequently, FDI plays a key role in Pennsylvania, strengthening both the state’s economy and its workforce. Demonstrating a firm commitment to this purpose, Pennsylvania’s Office of International Business Development (OIBD), a division of BusinessPA, actively works to attract foreign investors and support the success of global companies operating in the state. As part of this mission, OIBD provides a variety of resources and information to assist parties interested in FDI and connect them with available programs, solutions, and funding opportunities. This information includes the following facts regarding FDI in Pennsylvania, emphasizing its significant impact in the state:
Pennsylvania’s GDP is $965 billion, comparable to that of the Netherlands and larger than countries like Switzerland and Turkey
There are around 7,300 foreign-owned firms operating in the state
Over 436,000 Pennsylvania workers are employed by foreign-owned firms
The top countries investing in the state include the United Kingdom, Germany, Canada, France, and Japan
The vast extent of FDI in Pennsylvania is further evidenced by data regarding the number of foreign-owned firms and employment in the state. Such information was compiled from OIBD’s country fact sheets, which further demonstrate the business connections between Pennsylvania and thirty-one key countries that do business there. The fact sheets, which contain the data below pertaining to total and manufacturing FDI, can be found here.
*Data represents a minimum of 50% foreign ownership. The total number of firms may include multiple locations, but excludes retail establishments.
Total Foreign-Owned Firms in Pennsylvania by Country and their Employees, 2023
Foreign-Owned Manufacturing Firms in Pennsylvania by Country and their Employees, 2023
(Source: Dun & Bradstreet, October 2023)
With foreign-owned firms using Pennsylvania as a center for production, distribution, and sales, such companies contribute significantly to both exports and imports. This and additional international trade is key to Pennsylvania’s engagement with economies around the world, working in conjunction with FDI to drive economic growth in the state. Export and import data for Pennsylvania is also available on BusinessPA’s website and includes the following:
Exports account for over 5% of the state’s GDP
Exports support around 1.6 million jobs in Pennsylvania
Over $1 trillion in goods and services move through PA infrastructure each year
Pennsylvania reaches customers in 209 countries and territories
The most recent data revealing the state’s top export and import countries is available from USA Trade Online, an online data tool from the U.S. Census. It is worth noting that this data does not include export or import shipments under $2,500 that are not subject to other regulatory requirements, meaning that the values listed understate the total amount of trade that took place during the designated time period.
Top Countries by Exports from Pennsylvania, January 2024 through March 2025 (in $USD)
Top Countries by Increase in Exports from Pennsylvania, 2014 to 2024 (in % Change)
Top Countries by Imports to Pennsylvania, January 2024 through March 2025 (in $USD)
Top Countries by Increase in Imports to Pennsylvania, 2014 to 2024 (in % Change)
(Source: USA Trade Online, U.S. Census Bureau)
OIBD and the broader BusinessPA team have a variety of available resources for those interested in FDI or international trade based in Pennsylvania. According to BusinessPA’s website, these services include the following:
Site Selection & Visits: Find and tour potential sites that fit business needs.
Research & Data: Get detailed insights on available workforce, infrastructure, taxes, and more.
Business Connections: Meet regional and local suppliers, economic development partners and elected officials.
Financial Assistance: Explore grants, low-interest loans, tax credits, and other financial tools.
For more information, visit BusinessPA’s pages on FDI and international trade. Along with these resources, Pennsylvania’s Global Investment Representatives and Authorized Trade Representatives, each of whom serve a specific geographic area, are available to assist with FDI and exporting, respectively. Reflecting Pennsylvania’s commitment to global engagement, these resources ensure that Pennsylvania remains both economically competitive and deeply connected with markets around the world.
NOT PART OF REPORT:
Potential Sources (most data is outdated):
Dun & Bradstreet- requires subscription (more recent??)
PA OIBD (minimal data, but it’s newer- from D&B): https://pagetsitdone.com/locate_or_expand/foreign_direct_investment.html
Global Business Alliance Report: https://globalbusiness.org/wp-content/uploads/2024/12/Pennsylvania.pdf
PA Fact Sheet: https://www.trade.gov/sites/default/files/2023-09/Pennsylvania.pdf
PA Data: https://www.bea.gov/data/intl-trade-investment/activities-us-affiliates-foreign-mnes
Potential resource w/ new data??: https://www.fdimarkets.com/about
USA Data: https://www.bea.gov/data/intl-trade-investment/international-transactions
