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The Value of “Made in USA”: Impact of Chinese acquisition of a US Company on Consumer Willingness to Pay

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  • JIN, SHAOSHENG
  • ZHANG, YU

Abstract

In this study, we explore how the acquisition of Smithfield, the world’s larger pork producer, by a Chinese firm Shuanghui, on Chinese consumers’ WTP to meat product using experimental auctions. We conducted two sets of experiments, one when the acquisition was still pending approval and the other after its approval. Our results indicate that the acquisition benefits Shuanghui in particular and other Chinese firms in general in terms of consumer’s willingness to pay. On the other firms, the general impacts on US firms might be negative, probably due to expected lower price or reduced perceived difference between domestic and imported meat products.

Suggested Citation

  • Jin, Shaosheng & Zhang, Yu, 2014. "The Value of “Made in USA”: Impact of Chinese acquisition of a US Company on Consumer Willingness to Pay," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169805, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea14:169805
    DOI: 10.22004/ag.econ.169805
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    References listed on IDEAS

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    4. Nils Herger & Christos Kotsogiannis & Steve McCorriston, 2008. "Cross-border acquisitions in the global food sector," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 35(4), pages 563-587, December.
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    Cited by:

    1. Hao Ye & Lu Binwei & Guy Starkey, 2018. "Economic and Cultural Implications of China's One Belt One Road Initiative for the Film Industry: Cultural Distance and Taste Preference," Australian Economic Papers, Wiley Blackwell, vol. 57(3), pages 250-264, September.
    2. Jin, S. & Guo, H. & Wang, H.H. & Delgado, M.S., 2018. "Going global : determinants of Chinese outward foreign direct investment in the agri-food industry," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277186, International Association of Agricultural Economists.

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