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

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  • 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
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    References listed on IDEAS

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    Cited by:

    1. 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).
    2. 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).
    3. 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).
    4. 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).
    5. 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).
    6. 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.
    7. 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.
    8. 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).
    9. 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.
    10. 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.
    11. 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.
    12. Colyer, Dale, 2002. "Environmental Impacts Of Agricultural Trade Under Nafta," Conference Papers 19104, West Virginia University, Department of Agricultural Resource 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. 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.
    15. 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.
    16. 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.

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