IDEAS home Printed from https://ideas.repec.org/a/ags/phajad/165787.html
   My bibliography  Save this article

MNEs and the Global Integration of Thailand’s Processed Food Exports: A Firm-Level Study

Author

Listed:
  • Kohpaiboon, Archanun

Abstract

This paper presents the findings of a firm-level case study examining the role of multinational enterprises (MNEs) in processed food exports from Thailand. The discussion covers both FDI (foreign direct investment) and non-FDI channels of MNE involvement in the export of four major items, namely, canned pineapple, canned tuna, processed chicken, and processed shrimp. The findings suggest that MNEs play a vital role in the expansion of processed food exports from Thailand. MNE involvement begins with the establishment of joint ventures with Thai firms (FDI channel). Then, other local firms engage in export-oriented production and enhance their competitiveness through technology spillover. As the industry gains maturity, links with MNE buyers begin to play a far more important role than the FDI channel. The highly liberal trade and investment policy regime of Thailand, as well as the absorptive capability of local firms and the presence of the Thai MNE, CP group, are important elements of the enabling environment that allows these Thai exporting firms to gain maximum benefits from MNE involvement. The Thai experience demonstrates that the conventional approach of focusing on FDI as the sole link between MNEs and domestic manufacturing tends to overlook the significant role of MNEs in the export performance of the host countries’ diffused-technology industries such as food processing.

Suggested Citation

  • Kohpaiboon, Archanun, 2006. "MNEs and the Global Integration of Thailand’s Processed Food Exports: A Firm-Level Study," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 3(01-2), pages 1-20, December.
    • Handle: RePEc:ags:phajad:165787
    DOI: 10.22004/ag.econ.165787
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/165787/files/AJAD_2006_3_1_2_3Kohpaiboon.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.165787?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Prema‐Chandra Athukorala & Sisira Jayasuriya, 2003. "Food Safety Issues, Trade and WTO Rules: A Developing Country Perspective," The World Economy, Wiley Blackwell, vol. 26(9), pages 1395-1416, September.
    2. Crespo, Nuno & Fontoura, Maria Paula, 2007. "Determinant Factors of FDI Spillovers - What Do We Really Know?," World Development, Elsevier, vol. 35(3), pages 410-425, March.
    3. Goss, Jasper & Burch, David & Rickson, Roy E., 2000. "Agri-Food Restructuring and Third World Transnationals: Thailand, the CP Group and the Global Shrimp Industry," World Development, Elsevier, vol. 28(3), pages 513-530, March.
    4. Westphal, Larry E & Rhee, Yung W & Pursell, Garry, 1979. "Foreign Influences on Korean Industrial Development," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 41(4), pages 359-388, November.
    5. Borensztein, E. & De Gregorio, J. & Lee, J-W., 1998. "How does foreign direct investment affect economic growth?1," Journal of International Economics, Elsevier, vol. 45(1), pages 115-135, June.
    6. Nayyar, Deepak, 1978. "Transnational Corporations and Manufactured Exports from Poor Countries," Economic Journal, Royal Economic Society, vol. 88(349), pages 59-84, March.
    7. Lall, Sanjaya, 1980. "Vertical Inter-Firm Linkages in LDCs: An Empirical Study," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 42(3), pages 203-226, August.
    8. M. Anjum Altaf & Shahid Yusuf & Kaoru Nabeshima, 2004. "Global Production Networking and Technological Change in East Asia," World Bank Publications - Books, The World Bank Group, number 14918.
    9. repec:bla:jecsur:v:12:y:1998:i:3:p:247-77 is not listed on IDEAS
    10. Richardson, G B, 1972. "The Organisation of Industry," Economic Journal, Royal Economic Society, vol. 82(327), pages 883-896, September.
    11. Hone, Angus, 1974. "Multinational corporations and multinational buying groups: Their impact on the growth of asia's exports of manufactures-myths and realities," World Development, Elsevier, vol. 2(2), pages 145-149, February.
    12. Jaffee, S. & Gordon, P., 1993. "Exporting High-Value Food Commodities: Success Stories from Developing Countries," World Bank - Discussion Papers 198, World Bank.
    13. Michael Hobday, 1995. "Innovation In East Asia," Books, Edward Elgar Publishing, number 226.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jongwanich, Juthathip, 2009. "The impact of food safety standards on processed food exports from developing countries," Food Policy, Elsevier, vol. 34(5), pages 447-457, October.
    2. Ashraf Mishrif & Yousuf Al Balushi, 2017. "Effect Of Foreign Direct Investment On Domestic Enterprises In The Gulf Countries," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 11(3), pages 39-54.
    3. Juthathip Jongwanich & Nedelyn Magtibay-Ramos, 2009. "Determinants of structural change in food exports from developing countries," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 23(2), pages 94-115, November.
    4. Rosanna Pittiglio & Filippo Reganati & Edgardo Sica, 2015. "Do Multinational Enterprises Push up the Wages of Domestic Firms in the Italian Manufacturing Sector?," Manchester School, University of Manchester, vol. 83(3), pages 346-378, June.
    5. Laura Alfaro & Areendam Chanda & Sebnem Kalemli-Ozcan & Selin Sayek, 2006. "How Does Foreign Direct Investment Promote Economic Growth? Exploring the Effects of Financial Markets on Linkages," DEGIT Conference Papers c011_023, DEGIT, Dynamics, Economic Growth, and International Trade.
    6. K. Lenaerts & B. Merlevede, 2014. "FDI Spillovers and Multinational Firm Heterogeneity," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 14/879, Ghent University, Faculty of Economics and Business Administration.
    7. Müller, Patrick, 2021. "Impacts of inward FDIs and ICT penetration on the industrialisation of Sub-Saharan African countries," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 265-279.
    8. Santos, Eleonora & Khan, Shahed, 2018. "Determinant Factors of Pecuniary Externalities," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 6(8), pages 180-198.
    9. Maria Cipollina & Giorgia Giovannetti & Filomena Pietrovito & Alberto F. Pozzolo, 2012. "FDI and Growth: What Cross-country Industry Data Say," The World Economy, Wiley Blackwell, vol. 35(11), pages 1599-1629, November.
    10. Waldkirch, Andreas & Ofosu, Andra, 2010. "Foreign Presence, Spillovers, and Productivity: Evidence from Ghana," World Development, Elsevier, vol. 38(8), pages 1114-1126, August.
    11. Natasha Agarwal & Chris Milner & Alejandro Riaño, 2011. "Credit Constraints and FDI Spillovers in China," Discussion Papers 11/21, University of Nottingham, GEP.
    12. Yoshimichi Murakami & Nobuaki Hamaguchi, 2021. "Peripherality, income inequality, and economic development in Latin American countries," Oxford Development Studies, Taylor & Francis Journals, vol. 49(2), pages 133-148, April.
    13. World Bank, 2002. "The Federal Democratic Republic of Ethiopia : Developing Exports to Promote Growth," World Bank Publications - Reports 15422, The World Bank Group.
    14. Gorodnichenko, Yuriy & Svejnar, Jan & Terrell, Katherine, 2014. "When does FDI have positive spillovers? Evidence from 17 transition market economies," Journal of Comparative Economics, Elsevier, vol. 42(4), pages 954-969.
    15. Nuno Crespo & Maria Paula Fontoura & Isabel Proença, 2009. "FDI spillovers at regional level: Evidence from Portugal," Papers in Regional Science, Wiley Blackwell, vol. 88(3), pages 591-607, August.
    16. Natasha Agarwal & Chris Milner, 2011. "FDI Spillovers in China – Connecting the Missing Link between Micro and Macro," Discussion Papers 11/20, University of Nottingham, GEP.
    17. Rajneesh Narula & André Pineli, 2017. "Multinational Enterprises and Economic Development in Host Countries: What We Know and What We Don’t Know," Palgrave Studies in Impact Finance, in: Gianluigi Giorgioni (ed.), Development Finance, chapter 6, pages 147-188, Palgrave Macmillan.
    18. Jinzhao Chen & Thérèse Quang, 2012. "International Financial Integration and Economic Growth: New Evidence on Threshold Effects," Working Papers halshs-00710139, HAL.
    19. Jean-Louis Mucchielli, 1984. "Investissements internationaux et dynamique des avantages comparatifs des nouveaux pays industrialisés," Revue Économique, Programme National Persée, vol. 35(3), pages 537-570.
    20. Dalila NICET-CHENAF & Eric ROUGIER, 2009. "FDI and growth: A new look at a still puzzling issue," Cahiers du GREThA (2007-2019) 2009-13, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:phajad:165787. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/searcph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.