Determinants of Foreign Direct Investment in the Food-Processing Industry: A Comparative Analysis of Developed and Developing Economies

This paper analyzes the determinants of foreign direct investments by the U.S. food-processing industry in developed and developing countries. We find that market size, per-capita income, and trade openness significantly affect U.S. food-processing firmsÂ’' decisions to invest abroad, but their influence differs between developed and developing countries. Economic development is positively associated with FDI in developing countries but negatively associated in developed countries. Market size is a major determinant of FDI only in developed economies. Trade openness seems to be important for sales by U.S. foreign affiliates in both developed and developing countries and for exports to developed country markets.


Issue Date:
2004-11
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/27558
Published in:
Journal of Food Distribution Research, Volume 35, Number 3
Page range:
60-67
Total Pages:
8




 Record created 2017-04-01, last modified 2017-08-24

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