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Economy

Banning Foreign Investment In Critical Infrastructure Could Hurt Ohio's Economy

Money
SHUTTERSTOCK.COM
Ohio could struggle for future development, if the money from foreign entities is no longer being taken in.

House Republicans are pushing for a ban on foreign entities investing in Ohio's critical infrastructure, such as pipelines and power plants. But an economics professor says this can stifle future development. 

The resolution would force foreign investors with a majority ownership to take their money out of companies deemed to be critical to Ohio's infrastructure, saying that investment leaves Ohio open to a potential threat.

The idea came after supporters of the nuclear power plant bailout law tried to tie bailout opponents to Chinese interests.

Ned Hill, professor of economic development at The Ohio State University, calls this a xenophobic policy that can have a negative ripple effect on other investments.

"All of the sudden, Ohio becomes an unpredictable place to invest money in and invest in productive capacity," said.

Hill says it will send a bad message to foreign investors with money in other companies.