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Modal FDI Strategies in Asia-Pacific Region

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  • Cai, Xiaowei
  • Stiegert, Kyle W.

Abstract

This paper utilized a Binomial Logistic model to study the world’s 60 largest food and beverage multinational firms’ (MNE) decisions on the forms of ownership for their foreign subsidiaries in the Asia-Pacific Rim region during the early to mid 1990s. Both firm and country-specific factors are used to explain the MNEs’ investment strategy. The model found that the firm’s past investment patterns, product type, the operations risk index in the host nation, and the geographic distance between investing firm’s home nation and the host nation all had significant impact on the bi-modal investment choice by the MNEs.

Suggested Citation

  • Cai, Xiaowei & Stiegert, Kyle W., 2012. "Modal FDI Strategies in Asia-Pacific Region," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(2), pages 1-14, May.
    • Handle: RePEc:ags:ifaamr:127107
    DOI: 10.22004/ag.econ.127107
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    References listed on IDEAS

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    Cited by:

    1. Nakamura, Masao & Zhang, Anming, 2018. "Foreign direct investment with host country market structures, with empirical application to Japan," Journal of the Japanese and International Economies, Elsevier, vol. 49(C), pages 43-53.

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