Reindustrialization meets rural reality: The limits of foreign direct investment‐led development

As industrial policy drives new waves of foreign direct investment (FDI) into the U.S., rural areas are becoming key destinations. Using synthetic control, difference‐in‐differences, and propensity score matching, I examine whether rural FDI translates job growth into higher incomes. Evidence from Kia Motors' $1.2 billion investment in Troup County, Georgia, and a national panel of rural counties (1995–2019) shows that FDI raises employment—by 13%–16% locally and 3% nationally—but has no average effect on income. Gains occur where housing and labor markets are strong, suggesting FDI must be paired with policies that improve housing supply, mobility, and absorptive capacity.