LOS ANGELES--(BUSINESS WIRE)--A survey from Pepperdine University’s Graziadio School of Business and Management shows foreign private companies and capital providers are more likely to expand or invest in India today relative to one year ago. India was followed by Brazil, China, Canada and Australia with the U.S. ranking 6th among destinations for investment.
Responding to the same question, U.S.-based privately-held companies however believed that the United States boasted the most improved location for investment and expansion. The U.S. was followed closely by Canada, Brazil and India.
When U.S. and foreign responses were combined the 1,224 respondents listed the EU, Russia, Mexico and Japan as having the least attractive landscapes for investment as compared to one year ago.
The data comes on the heels of President Obama’s State of the Union address in which the President discussed the need for America to innovate and retain its place as a world economic leader. The President also highlighted that he wants to improve competitiveness so “new jobs and industries take root in this country.”
According to findings detailed in Pepperdine’s 2011 Economic Forecast of private capital markets (http://bit.ly/privatecapforecast), nearly 35% of respondents said that increasing access to capital would be the most effective tool to spur job creation. Respondents also added that tax incentives (19.6%), regulatory reform (16.9%) and increased competitiveness with foreign trade partners (16.9%) would help improve unemployment.
These findings are part of economic forecast data released recently from the Pepperdine Private Capital Markets Project (http://bschool.pepperdine.edu/privatecapital), an investigation of the major private capital markets that examines the current state and outlook for the private capital industry.
“These results suggest the U.S. may be reviving a ‘made-in-the-USA’ approach while foreign companies are seeing ‘greener grass’ in the global marketplace”, said Dr. John Paglia, lead researcher of the Private Capital Markets Project and associate professor of finance at Pepperdine University’s Graziadio School of Business and Management. “In order for the U.S. to grow its economy, we must advance domestic and foreign investment in the U.S. This will help create jobs which is a key measure for an economic recovery.”
The Pepperdine Private Capital Markets Project is a critical step along the path of understanding and increasing the value of private companies and our economy. Professionals who work in the lending or investment arenas either for an institution or a specific fund are excellent bellwethers of what is ahead for other businesses and consumers. Through two survey cycles and published summary reports per year, lenders, investors and the businesses that depend on them will be able to make optimal investment and financing decisions, and better determine where the opportunities to create lasting economic value may be realized.
The Winter 2011 Pepperdine Private Capital Markets Project summary report and 2011 Economic Forecast survey findings are available at: http://bschool.pepperdine.edu/privatecapital.
About the Graziadio School of Business and Management
Founded on the core values of integrity, stewardship, courage, and compassion, Pepperdine University’s Graziadio (GRAT-ZEE-ah-DEE-oh) School of Business and Management has been developing values-centered leaders and advancing responsible business practice since 1969. Student-focused, experience-driven, and globally-oriented, the Graziadio School offers fully accredited MBA, Masters of Science, and bachelor’s completion business programs. More information found at http://bschool.pepperdine.edu/newsroom/.