Template-Type: ReDIF-Paper 1.0
Author-Name:  Luljeta Hajderllari
Author-Name-First: Luljeta
Author-Name-Last: Hajderllari
Author-Email: luha@foi.ku.dk
Author-Workplace-Name: Institute of Food and Resource Economics, University of Copenhagen
Author-Name:  Kostas Karantininis
Author-Name-First: Kostas
Author-Name-Last: Karantininis
Author-Email: kok@foi.ku.dk
Author-Workplace-Name: Institute of Food and Resource Economics, University of Copenhagen
Author-Workplace-Name: Swedish University of Agricultural Sciences (SLU)
Author-Name:  Lartey G. Lawson
Author-Name-First: Lartey G.
Author-Name-Last: Lawson
Author-Email: lagl@fvst.dk
Author-Workplace-Name: Department of Business and Management, University of Aalborg
Title: FDI as an Export-Platform: A Gravity Model for the Danish Agri-Food Industry
Abstract: We investigate factors affecting Foreign Direct Investment (FDI) outflow from Danish agri-food 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.
Length: 32 pages
Creation-Date: 2012-05
File-URL: http://okonomi.foi.dk/workingpapers/WPpdf/WP2012/WP_2012_7_FDI_platform.pdf
File-Format: Application/pdf
Number: 2012/7
Classification-JEL: F14, F23, Q17, Q13
Keywords: FDI, export-platform, Danish Agri-Food, gravity model
Handle: RePEc:foi:wpaper:2012_7