The Recession and its Impact on Foreign Direct Investment Flows into the Food System of Less Developed Countries

This study investigates the effects of the current recession on foreign direct investment (FDI) in the food sectors of developing countries. The study tests the hypothesis that the economic recession adversely affects FDI flows in the food sector. The specific objectives are: to identify determinants that influence FDI inflows; to develop an econometric model to estimate changes in FDI inflows as influenced by factor determinants, including the present recession; and to compare the impact of the recession on FDI in the food system in different developed and developing economies.