Foreign direct investment by food processing firms: Motivation and location decisions

2014 Fiscal Year Final Research Report

• Project/Area Number: 24780213
• Research Category: Grant-in-Aid for Young Scientists (B)
• Allocation Type: Multi-year Fund
• Research Field: Agro-economics
• Research Institution: Hokkaido University (2014); Kyushu University (2012-2013)
• Principal Investigator: SAITO Hisamitsu 北海道大学, 経済学研究科(研究院), 准教授 (30540984)
• Project Period (FY): 2012-04-01 – 2015-03-31
• Keywords: 理論分析 / 実証分析

Outline of Final Research Achievements

This study investigates the motivation for and location decisions of foreign direct investment by Japanese food processing firms. The results show that a reduction in prices of agricultural products in a country attracts inward investment by high-productivity multinational firms. The entry of multinational firms induces the exit of low-productivity local firms from the market. The resulting increase in average productivity of food processing firms improves economic welfare of the host country.

Free Research Field

都市経済学