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. 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.
    2. Richardson, G B, 1972. "The Organisation of Industry," Economic Journal, Royal Economic Society, vol. 82(327), pages 883-896, September.
    3. 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.
    4. 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.
    5. 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.
    6. Jaffee, S. & Gordon, P., 1993. "Exporting High-Value Food Commodities: Success Stories from Developing Countries," World Bank - Discussion Papers 198, World Bank.
    7. 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.
    8. Michael Hobday, 1995. "Innovation In East Asia," Books, Edward Elgar Publishing, number 226.
    9. 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.
    10. Nayyar, Deepak, 1978. "Transnational Corporations and Manufactured Exports from Poor Countries," Economic Journal, Royal Economic Society, vol. 88(349), pages 59-84, March.
    11. 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, April.
    12. repec:bla:jecsur:v:12:y:1998:i:3:p:247-77 is not listed on IDEAS
    13. 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.
    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. 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.
    2. 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," NBER Working Papers 12522, National Bureau of Economic Research, Inc.
    3. 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.
    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. 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.
    6. 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.
    7. 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.
    8. 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.
    9. An, Galina & Puttitanun, Thitima, 2010. "Quality requirements in developing countries," Journal of Economics and Business, Elsevier, vol. 62(2), pages 94-115, March.
    10. Ivarsson, Inge & Alvstam, Claes Goran, 2005. "Technology transfer from TNCs to local suppliers in developing countries: A study of AB Volvo's truck and bus plants in Brazil, China, India, and Mexico," World Development, Elsevier, vol. 33(8), pages 1325-1344, August.
    11. Long, Cheryl & Yang, Jin & Zhang, Jing, 2015. "Institutional Impact of Foreign Direct Investment in China," World Development, Elsevier, vol. 66(C), pages 31-48.
    12. Natasha Agarwal & Chris Milner & Alejandro Riaño, 2011. "Credit Constraints and FDI Spillovers in China," Discussion Papers 11/21, University of Nottingham, GEP.
    13. María C. Latorre, 2013. "On the Differential Behaviour of National and Multinational Firms: A Within- and Across-sectors Approach," The World Economy, Wiley Blackwell, vol. 36(10), pages 1294-1317, October.
    14. Arif, Asma & An, Pengli & Qi, Yajie & Li, Huajiao & An, Haizhong & Hussain, Mujahid & Wang, Yanli, 2021. "The influence factors of the national roles in the FDI network: A combined methods of complex networks and Panel Data Analysis," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 563(C).
    15. Merlevede, Bruno & Schoors, Koen & Spatareanu, Mariana, 2014. "FDI Spillovers and Time since Foreign Entry," World Development, Elsevier, vol. 56(C), pages 108-126.
    16. 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.
    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. Mohammad Sharif Karimi & Andrzej Cieslik, 2017. "Foreign Knowledge Spillovers and Total Factor Productivity Growth: Evidence from Four ASEAN Countries," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 21(2), pages 267-299, Spring.
    19. Gui-Diby, Steve Loris, 2014. "Impact of foreign direct investments on economic growth in Africa: Evidence from three decades of panel data analyses," Research in Economics, Elsevier, vol. 68(3), pages 248-256.
    20. Chen, Jinzhao & Quang, Thérèse, 2014. "The impact of international financial integration on economic growth: New evidence on threshold effects," Economic Modelling, Elsevier, vol. 42(C), pages 475-489.

    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.