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FDI as an Export-Platform: a gravity model for the Danish agri-food industry

Luljeta Hajderllari, Konstantinos Karantininis, Lartey Godwin Lawson

    Publikation: Working paperForskning

    Abstract

    We investigate factors affecting Foreign Direct Investment (FDI) outflow from Danish agrifood firms to the rest of the world. We develop a conceptual model and subsequently use a gravity model based on data from 127 countries receiving Danish FDI in agri-food in 2004-2008. We find higher Danish FDI towards countries with large exports of agri-food, thereby supporting the hypothesis that FDI is used as an export-platform. FDI is coupled with high exports from Denmark, probably of raw or semi-processed food products for further processing and exports. We also find that FDI is higher in countries with stable political regimes.
    OriginalsprogEngelsk
    UdgivelsesstedFrederiksberg
    UdgiverInstitute of Food and Resource Economics, University of Copenhagen
    Antal sider30
    StatusUdgivet - 2012
    NavnFOI Working Paper
    Nummer2012/7

    Citationsformater