Assessment of Trade and Foreign Direct Investment Management Strategies on Competitiveness of U.S. Agro-Food Firms in China
(abstract)
This paper determines whether U.S. foreign direct investment (FDI) and exports of processed foods to China are substitutes or complements and identifies agro-food firms' management strategies to enhance competitiveness. Empirical econometric results from a simultaneous equation system indicate that there exists a strong complementary relationship between U.S. exports and FDI into China. Therefore, the appropriate managerial strategy to access Chinese processed foods markets is to increase overall business activity, both FDI and exports into China.
Key Words: International trade, exports, foreign direct investment, processed foods, competitiveness, United States, China.
* Mary A. Marchant is an Associate Professor, Sayed Saghaian is a Postdoctoral Scholar, and Steven S. Vickner is an Assistant Professor in the Department of Agricultural Economics, University of Kentucky.
This research was funded by the National Research Initiative (NRI) Competitive Grant Program of the U.S. Department of Agriculture.
This paper was presented at the Building Trust in the Agro-Food System: Trade, Technology and Competitiveness conference sponsored by the International Food and Agribusiness Management Association, Florence, Italy, June 1999.
Citation:
Marchant, Mary A., Sayed Saghaian, and Steven S. Vickner. "Assessment of Trade and
Foreign Direct Investment Management Strategies on Competitiveness of U.S.
Agro-Food Firms in China." Proceedings of the Building Trust
in the Agro-Food System: Trade, Technology, and Competitiveness conference
sponsored by the International Food and Agribusiness Management Association, Florence,
Italy: June 1999,June 1999, in press.
Staff papers are published without formal review. Viws expressed are those of the authors and do not necessarily reflect the view of the University of Kentucky, the Agricultural Experiment Station, or the Cooperative Extension Service.
For More Information
For additional information, please contact, Mary A. Marchant.