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Increased Foreign Investment in U.S. Food Industries

Author

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  • MacDonald, James M.
  • Weimer, Scott A.

Abstract

Foreign investment in U.S. food manufacturing grew by 60 percent between 1976 and 1982, while it grew by 300 percent in food wholesaling and retailing and grew by 600 percent in the rapidly expanding foodservice industry. Despite the growth, foreign-owned firms still employ only 3.5 percent of the food industry work force. As the world's economies become more closely linked, foreign investment in the U.S. food system should continue to grow. However, exchange rate fluctuations will cause sharp fluctuations in investment; most of the recent increase occurred between 1978 and 1981, as a declining dollar reduced the price of U.S. assets. Since 1981, the strength of the U.S. dollar has reduced foreign investment generally.

Suggested Citation

  • MacDonald, James M. & Weimer, Scott A., 1985. "Increased Foreign Investment in U.S. Food Industries," Agricultural Economic Reports 307996, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerser:307996
    DOI: 10.22004/ag.econ.307996
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    References listed on IDEAS

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    1. John M. Connor, 1983. "Determinants of Foreign Direct Investment by Food and Tobacco Manufacturers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(2), pages 395-404.
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