Determinants of Foreign Direct Investment in the Food Manufacturing Industry

Minh Wendt and Glenn D. Pederson

No 21441, 2006 Annual meeting, July 23-26, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This paper examines firm-specific characteristics in the food manufacturing industry that affect firms' decisions in accessing foreign markets via foreign direct investment (FDI). It also seeks to assess variations in the intensity level of multinational firm involvement in FDI given these characteristics. It finds that capital-intensive firms with higher levels of intangible assets, profitability, and knowledge capital are more likely to be MNEs. It also finds that intangible assets and knowledge capital underline the tendency of MNEs to invest more intensively abroad. Furthermore, firm size is found to play an important but not necessarily dominant role in FDI propensity and intensity.

Keywords: Agribusiness (search for similar items in EconPapers)
Pages: 27
Date: 2006
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea06:21441

DOI: 10.22004/ag.econ.21441

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