IDEAS home Printed from https://ideas.repec.org/p/ags/uerser/34017.html
   My bibliography  Save this paper

U.S. Foreign Direct Investment in the Western Hemisphere Processed Food Industry

Author

Listed:
  • Bolling, H. Christine
  • Neff, Steven
  • Handy, Charles R.

Abstract

Foreign direct investment (FDI) has become the leading means for U.S. processed food companies to participate in international markets. Affiliates of U.S.-owned food processing companies had $30 billion in sales throughout the Western Hemisphere in 1995, nearly 4 times the level of processed food exports. This report puts U.S. foreign direct investment and trade in processed foods to the region into global perspective, and finds evidence that, in the aggregate for the 1990's, trade and FDI are complementary--not competitive--means of accessing international food markets. Incomes have grown sufficiently in most countries to support growth in affiliate sales and U.S. exports, indicating a strong demand for a wide variety of processed foods.

Suggested Citation

  • Bolling, H. Christine & Neff, Steven & Handy, Charles R., 1998. "U.S. Foreign Direct Investment in the Western Hemisphere Processed Food Industry," Agricultural Economic Reports 34017, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerser:34017
    DOI: 10.22004/ag.econ.34017
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/34017/files/ae980760.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.34017?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. James R. Markusen, 1995. "The Boundaries of Multinational Enterprises and the Theory of International Trade," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 169-189, Spring.
    2. James R. MARKUSEN, 2021. "Factor Movements And Commodity Trade As Complements," World Scientific Book Chapters, in: BROADENING TRADE THEORY Incorporating Market Realities into Traditional Models, chapter 15, pages 325-340, World Scientific Publishing Co. Pte. Ltd..
    3. John H. Dunning, 1977. "Trade, Location of Economic Activity and the MNE: A Search for an Eclectic Approach," Palgrave Macmillan Books, in: Bertil Ohlin & Per-Ove Hesselborn & Per Magnus Wijkman (ed.), The International Allocation of Economic Activity, chapter 12, pages 395-418, Palgrave Macmillan.
    4. Markusen, James R. & Venables, Anthony J., 1988. "Trade policy with increasing returns and imperfect competition : Contradictory results from competing assumptions," Journal of International Economics, Elsevier, vol. 24(3-4), pages 299-316, May.
    5. -, 1990. "Agroindustrias en la Argentina: cambios organizativos y productivos, 1970-1990," Oficina de la CEPAL en Buenos Aires (Estudios e Investigaciones) 28604, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    6. Unknown, 1994. "Foreign Agricultural Trade of the United States July/August 1994," Foreign Agricultural Trade of the United States (FATUS) 164389, United States Department of Agriculture, Economic Research Service.
    7. Burfisher, Mary & Robinson, Sherman & Thierfelder, Karen, 1992. "Agricultural and food policies in a United States-Mexico free trade area," The North American Journal of Economics and Finance, Elsevier, vol. 3(2), pages 117-139.
    8. Unknown, 1994. "Foreign Agricultural Trade of the United States May/June 1994," Foreign Agricultural Trade of the United States (FATUS) 163976, United States Department of Agriculture, Economic Research Service.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bolling, Christine & Somwaru, Agapi, 2001. "U.S. Food Companies Access Foreign Markets Through Direct Investment," Food Review/ National Food Review, United States Department of Agriculture, Economic Research Service, vol. 24(3), pages 1-6.
    2. Doan, Darcie & Goldstein, Andrew & Zahniser, Steven & Vollrath, Thomas L. & Bolling, H. Christine, 2004. "North American Integration In Agriculture: A Survey Paper," North American Agrifood Integration: Situation and Perspectives, May 2004, Cancun, Mexico 16730, Farm Foundation.
    3. Carter, Colin A. & Yilmaz, Alper, 1999. "Foreign Direct Investment (Fdi) And Trade - Substitutes And Complements? An Application To The Processed Food Industry," 1999 Annual meeting, August 8-11, Nashville, TN 21665, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Somwaru, Agapi & Bolling, H. Christine, 1999. "U.S. Foreign Direct Investment And Trade: Substitutes Or Complements? The Case Of The Food Processing Industry," 1999 Annual meeting, August 8-11, Nashville, TN 21715, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Kim, Sounghun, 2008. "Market Concentration of the Processed Food in Korea," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 31(5), pages 1-23, November.
    6. Makki, Shiva S. & Somwaru, Agapi & Bolling, H. Christine, 2003. "Determinants Of U.S. Foreign Direct Investments In Food Processing Industry: Evidence From Developed And Developing Countries," 2003 Annual meeting, July 27-30, Montreal, Canada 22035, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Darren Hudson & Tian Xia & Osei Yeboah, 2005. "Foreign Direct Investment and Domestic Industries: Market Expansion or Outsourcing? ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(3), pages 387-393.
    8. Carter, Colin A. & Yilmaz, Alper, 1999. "Foreign Direct Investment (FDI) and Trade-Substitutes or Complements? An Application to the Processed Food Industry," 1999 Annual meeting, August 8-11, Nashville, TN 271492, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Yilmaz, Alper, 1999. "Host Country Welfare Effects Of Foreign Direct Investment (Fdi) And Imports: An Application To The Processed Food Industry," 1999 Annual meeting, August 8-11, Nashville, TN 21585, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Wilson, Norbert L.W., 2006. "Linkages amongst Foreign Direct Investment, Trade and Trade Policy: An Economic Analysis with Applications to the Food Sector," 2006 Annual meeting, July 23-26, Long Beach, CA 21064, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Colyer, Dale, 2002. "Environmental Impacts Of Agricultural Trade Under Nafta," Conference Papers 19104, West Virginia University, Department of Agricultural Resource Economics.
    12. Mattson, Jeremy W. & Koo, Won W., 2002. "U.S. Processed Food Exports And Foreign Direct Investment In The Western Hemisphere," Agribusiness & Applied Economics Report 23547, North Dakota State University, Department of Agribusiness and Applied Economics.
    13. Sparling, David & Cook, Roberta L., 2000. "Strategic Alliances And Joint Ventures Under Nafta: Concepts And Evidence," Proceedings of the 5th Agricultural and Food Policy Systems Information Workshop, 1999: Policy Harmonization and Adjustment in the North American Agricultural and Food Industry 16778, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    14. Burfisher, Mary E., 2000. "The Institutional Environment For Agricultural Trade In The Ftaa," Proceedings of the 5th Agricultural and Food Policy Systems Information Workshop, 1999: Policy Harmonization and Adjustment in the North American Agricultural and Food Industry 16793, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    15. Makki, Shiva S. & Somwaru, Agapi & Bolling, H. Christine, 2004. "Determinants of Foreign Direct Investment in the Food-Processing Industry: A Comparative Analysis of Developed and Developing Economies," Journal of Food Distribution Research, Food Distribution Research Society, vol. 35(3), pages 1-8, November.
    16. John Wilkinson, 2004. "The Food Processing Industry, Globalization and Developing Countries," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 1(2), pages 184-201.

    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. M. T. Alguacil & V. Orts, 2003. "Inward Foreign Direct Investment and Imports in Spain," International Economic Journal, Taylor & Francis Journals, vol. 17(3), pages 19-38.
    2. Salvador Barrios & Holger Görg & Eric Strobl, 2003. "Multinational Enterprises and New Trade Theory: Evidence for the Convergence Hypothesis," Open Economies Review, Springer, vol. 14(4), pages 397-418, October.
    3. Larry D. Qiu, 2003. "Comparing Sectoral FDI Incentives: Comparative Advantages and Market Opportunities," Annals of Economics and Finance, Society for AEF, vol. 4(1), pages 151-176, May.
    4. M.T. Alguacil & V. Orts, "undated". "A multivariate cointegrated model testing for temporal causality between exports and outward FDI: The Spanish case," Studies on the Spanish Economy 50, FEDEA.
    5. Devereux, Michael P. & Griffith, Rachel, 1998. "Taxes and the location of production: evidence from a panel of US multinationals," Journal of Public Economics, Elsevier, vol. 68(3), pages 335-367, June.
    6. Kim, Sukkoo, 1999. "The Rise of Multiunit Firms in U.S. Manufacturing," Explorations in Economic History, Elsevier, vol. 36(4), pages 360-386, October.
    7. Tropp, Debra & Skully, David & Link, John & Málaga, Jaime, 2002. "Mexico’s Changing Marketing System for Fresh Produce: Emerging Markets, Practices, Trends, and Issues," Analysis 317882, United States Department of Agriculture, Agricultural Marketing Service, Transportation and Marketing Program.
    8. Linda S. Goldberg & Michael W. Klein, 1999. "International Trade and Factor Mobility: An Empirical Investigation," NBER Working Papers 7196, National Bureau of Economic Research, Inc.
    9. Roberta De Santis & Maria Cristina Mercuri & Claudio Vicarelli, 2001. "Taxes and Location of Foreign Direct Investments: an Empirical Analysys for the European Union Countries," ISAE Working Papers 24, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
    10. Carstensen, Kai & Toubal, Farid, 2004. "Foreign direct investment in Central and Eastern European countries: a dynamic panel analysis," Journal of Comparative Economics, Elsevier, vol. 32(1), pages 3-22, March.
    11. George Norman, 2009. "Internalization Revisited," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 165(1), pages 121-133, March.
    12. G. Ietto-Gillies, 1998. "Location of Affiliates and Degree of Internationalisation: An Analysis of the World's Largest 664 TNCs," CIBS Research Papers in International Business 14-98, London South Bank University CIBS.
    13. Kaufman, Phillip R. & Handy, Charles R. & McLaughlin, Edward W. & Park, Kristen & Green, Geoffrey M., 2000. "Understanding The Dynamics Of Produce Markets: Consumption And Consolidation Grow," Agricultural Information Bulletins 33747, United States Department of Agriculture, Economic Research Service.
    14. Markusen, James R. & Venables, Anthony J. & Eby Konan, Denise & Zhang, Kevin H., 1996. "A Unified Treatment of Horizontal Direct Investment, Vertical Direct Investment, and the Pattern of Trade in Goods and Services," Working Paper Series 465, Research Institute of Industrial Economics.
    15. Toubal, Farid & Kleinert, Jörn & Buch, Claudia M., 2003. "Determinants of German FDI: New Evidence from Micro-Data," Discussion Paper Series 1: Economic Studies 2003,09, Deutsche Bundesbank.
    16. Qiu, Larry D. & Tao, Zhigang, 2001. "Export, foreign direct investment, and local content requirement," Journal of Development Economics, Elsevier, vol. 66(1), pages 101-125, October.
    17. Oscar Bajo-Rubio & María Montero-Muñoz, 2001. "Foreign Direct Investment and Trade: A Causality Analysis," Open Economies Review, Springer, vol. 12(3), pages 305-323, July.
    18. Bruce A. Blonigen, 2019. "In Search of Substitution Between Foreign Production and Exports," World Scientific Book Chapters, in: Foreign Direct Investment, chapter 9, pages 293-323, World Scientific Publishing Co. Pte. Ltd..
    19. Pontus Braunerhjelm & Per Thulin, 2009. "Agglomeration, Relative Wage Costs and Foreign Direct Investment—Evidence from Swedish MNCs 1974–1998," Journal of Industry, Competition and Trade, Springer, vol. 9(3), pages 197-217, September.
    20. Koop, Michael J., 1997. "Trade, Foreign direct investment, and multinational enterprises in a general equilibrium model," Kiel Working Papers 833, Kiel Institute for the World Economy (IfW Kiel).

    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:uerser:34017. 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/ersgvus.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.