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Economic Analysis of Incentives for Foreign Direct Investment in Beef Systems in Argentina and Uruguay

Author

Listed:
  • Thor, Eric, III
  • Bailey, DeeVon
  • Silvac, Alejandro R.
  • Vickner, Steven S.

Abstract

The European Union's (EU) ban of hormone-treated beef products in 1989 has virtually eliminated beef exports to the EU from countries where cattle are routinely implanted with growth hormones. This study examined whether or not foreign direct investment in beef systems in Argentina and Uruguay would provide a profitable method for investors who want to export beef to the EU. The results indicate that while investment in these systems is potentially profitable, government interventions designed to keep domestic beef prices low inject considerable risk into the investment decision.

Suggested Citation

  • Thor, Eric, III & Bailey, DeeVon & Silvac, Alejandro R. & Vickner, Steven S., 2007. "Economic Analysis of Incentives for Foreign Direct Investment in Beef Systems in Argentina and Uruguay," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 10(3), pages 1-22.
    • Handle: RePEc:ags:ifaamr:8167
    DOI: 10.22004/ag.econ.8167
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    References listed on IDEAS

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    Cited by:

    1. Bailey, DeeVon, 2007. "Political Economy of the U.S. Cattle and Beef Industry: Innovation Adoption and Implications for the Future," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(3), pages 1-14, December.

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