THE ECONOMICS OF FOREIGN DIRECT INVESTMENT AND TRADE WITH AN APPLICATION TO THE U.S. FOOD PROCESSING INDUSTRY
| dc.creator | Gopinath, Munisamy | |
| dc.creator | Pick, Daniel H. | |
| dc.creator | Vasavada, Utpal | |
| dc.date | 2017-04-01T19:58:49Z | |
| dc.date.accessioned | 2026-07-09T04:48:49Z | |
| dc.description | This paper investigates the determinants of foreign direct investment (FDI) and its relationship to trade in the U.S. food processing industry. A representative multinational corporation maximizes profits by choosing between production in the home country, which is exported, and production in a foreign country. This introduces the possibility that foreign affiliate sales can be a substitute and/or complement for exports. The empirical framework consists of a system of four equations with foreign affiliate sales, exports, affiliate employment, and FDI as endogenous variables. The results confirm a small substitution between foreign affiliate sales and exports. The empirical evidence supports the hypothesis that FDI is also protection-jumping. | |
| dc.identifier | doi:10.22004/ag.econ.51205 | |
| dc.identifier | https://ageconsearch.umn.edu/record/51205/files/98-1.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/51205 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/555213 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/51205 | |
| dc.title | THE ECONOMICS OF FOREIGN DIRECT INVESTMENT AND TRADE WITH AN APPLICATION TO THE U.S. FOOD PROCESSING INDUSTRY | |
| dc.type | Text |