This article investigates locational determinants of US direct foreign investment (DFI) in food and kindred products by using data from six industrialized countries fiom I983 to 1989. Separate equations were fitted to explain DFI position, outjlow, and reinvestment. Cultural linkages, trading blocs,
The determinants of location choices for food processing plants
โ Scribed by Rigoberto A. Lopez; Nona R. Henderson
- Publisher
- John Wiley and Sons
- Year
- 1989
- Tongue
- English
- Weight
- 777 KB
- Volume
- 5
- Category
- Article
- ISSN
- 0742-4477
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โฆ Synopsis
This article examines the determinants of location choices for new food processing plants using the results of a telephone survey. Six categories of business climate factors (market, infrastructure, labor, personal, environmental regulation, and fiscal policy) containing 41 specific location factors are considered. The survey responses are analyzed in their entirety, by types of raw products processed, and by plant size. Findings indicate that plant location choices are driven by market and infrastructural factors. Fiscal policies such as tax and development incentives are insignificant. Implications of the findings for devising incentive packages to attract new plants are given.
sample. Another consideration that went into the sample design was the distribution of type of raw products processed across firms.
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