Trade and foreign direct investment management strategies for U.S. processed food firms in China

Marchant, Mary A.; Saghaian, Sayed H.; Vickner, Steven S.

doi:10.1016/s1096-7508(00)00022-7

Cited by 14 publications

(10 citation statements)

References 6 publications

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“…This parameter estimate was highly significant at the 1% level, and these results imply that U.S. agribusinesses invest in high-income countries. The importance of G D P has been verified by Gopinath, Pick, and Vasavada (1999); Marchant, Saghaian, and Vickner;Lipsey and Weiss (1981); and Ning and Reed. Empirical results indicate that relative compensation rates (foreign compensation rate relative to U.S. compensation rate) positively affect FDI. Similar results were obtained by Barrell and Pain and by Gopinath, Pick, and Vasavada (1999).…”

Section: Fdi Empirical Resultsmentioning

confidence: 90%

International Trade and Foreign Direct Investment: Substitutes or Complements?

Marchant

Cornell

Koo

2002

J. Agric. Appl. Econ.

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International agricultural trade has evolved over time. Processed foods and developing countries have become major growth markets for U.S. agricultural exports, and foreign direct investment (FDI) has become even more important than exports as a means of accessing foreign markets. The critical question is whether FDI is a substitute for or a complement of exports. This research builds upon an existing theoretical FDI model and contributes to the literature through the development of a simultaneous equation system for FDI and exports, which is estimated using two-stage least squares. Empirical analyses were used to examine the relationship between U.S. FDI and exports of processed foods into East Asian countries-China, Japan, Singapore, South Korea, and Taiwan-from 1989 to 1998. The results indicated a complementary relationship between FDI and exports. Additionally, these results indicated that interest rates, exchange rates, gross domestic product (GDP), and compensation rates are important variables that influence U.S. FDI in East Asian countries, while GDP, exchange rates, and export prices are important export determinants.

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Section: Fdi Empirical Resultsmentioning

confidence: 90%

International Trade and Foreign Direct Investment: Substitutes or Complements?

Marchant

Cornell

Koo

2002

J. Agric. Appl. Econ.

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“…Another large body of literature has concentrated on the relationship between FDI and trade policy in agriculture and food industry, but the empirical results appear mixed (Overend et al , 1997; Pagoulatos, 1983). Viewing empirical studies from a developed versus developing country perspective indicates that the relationship between FDI and export tends to be substitutive between developed countries (Gopinath et al , 1999; Furtan and Holzman, 2004), and complementary from developed to developing countries (Malanoski et al , 1997; Marchant et al , 1999).…”

Section: Determinants Of Fdi Inflow To China's Agriculturementioning

confidence: 99%

Determinants and performance index of foreign direct investment in China's agriculture

Li-cai

Wen

Qi-quan

2010

China Agricultural Economic Review

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PurposeSince attracting foreign direct investment (FDI) to agriculture is now an important policy concern for the Chinese Government, it is necessary to develop benchmarks of the inward FDI performance. The purpose of this paper is to explore the determinants of FDI and evaluate the inward FDI performance in China's agriculture.Design/methodology/approachA multi‐variable regression model is conducted to examine the determinants of FDI in China's agriculture over the period from 1985 to 2006. In order to evaluate the inward FDI performance, the inward FDI performance index is developed at industrial level.FindingsThe results indicate that agricultural market size has a significant positive effect but agricultural import has a negative effect on FDI inflow to China's agriculture. The effect of agricultural export is positive but not statistically significant. It is stated that the orientation of FDI policy during China's agricultural opening process is still not clear, and the decrease of the share of fiscal expenditure is apparently not conducive to attract more FDI in China's agriculture. In addition, the performance index shows the inward FDI performance in China's agriculture is improving but not satisfactory compared to its market size.Originality/valueThe inward FDI performance index is tentatively used to evaluate the performance of FDI inflow to China's agriculture. The results of this paper have significant policy implications for the government to determine where to head in using FDI in China's agriculture in the future.

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“…According to the proximity-concentration trade-off hypothesis, FDI and exports are substitutes (Belderbos and Sleuwaegen, 1998;Gopinath et al1999.). In contrast, the spillover effects of multinational corporations on productivity of local firms in the host countries resulting from vertical FDI give rise to the complementarity between FDI and exports (Pfaffermayer, 1994;Brainard, 1997;Co, 1997;Marchant et al, 1999;Clausing, 2000;Jensen, 2002;Wilson, 2006.) In a second line of inquiry, which reflects our second contribution to the literature, we test the presence of third-country effects.…”

Section: Figure 1: Trends In Fdi Outflows: a Regional Comparisonmentioning

confidence: 99%

Spatial determinants of U.S. FDI and exports in OECD countries

Boubacar

2016

Economic Systems

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Trade and foreign direct investment management strategies for U.S. processed food firms in China

Cited by 14 publications

References 6 publications

International Trade and Foreign Direct Investment: Substitutes or Complements?

International Trade and Foreign Direct Investment: Substitutes or Complements?

Determinants and performance index of foreign direct investment in China's agriculture

Spatial determinants of U.S. FDI and exports in OECD countries

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