Foreign Direct Investment in the Food Manufacturing Industry

Minh Wendt and Glenn D. Pederson

No 14319, Working Papers from University of Minnesota, The Food Industry Center

Abstract: Decisions to access foreign markets via foreign direct investment (FDI) are examined using firm-level characteristics in the food manufacturing industry. We also assess variations in the intensity of FDI by parent companies in a variety of countries. We find that capital-intensive firms with higher levels of intangible assets (brand names and reputation), profitability, and knowledge capital are more likely to become multinational enterprises (MNEs). The findings also suggest that intangible assets and knowledge capital underlie the tendency of MNEs to invest more intensively abroad. Larger firm size plays an important, but not a dominant, role in predicting increased FDI activity in the food manufacturing industry.

Keywords: Agribusiness; International Relations/Trade (search for similar items in EconPapers)
Pages: 28
Date: 2006
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:umrfwp:14319

DOI: 10.22004/ag.econ.14319

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