Agrifood Foreign Direct Investment and Waves of Globalization of Emerging Markets: Less for US Firms

January 20, 2018 - Titus Awokuse, Thomas Reardon<reardon@msu.edu>

Awokuse, T., & Reardon, T. (2018). Agrifood Foreign Direct Investment and Waves of Globalization of Emerging Markets: Lessons for US Firms. Economic Review-Federal Reserve Bank of Kansas City, 75-96.

Abstract

European and US trade and foreign direct investment (FDI) into the agrifood sector of developing and emerging economies in Africa, Asia, and Latin America have been important for 500 years. As the economic and policy context has evolved, globalization has proceeded in three recent (in the past 500 years) waves. The first wave, from the 1400s to the 1970s, focused mainly on European (and later US) FDI into and trade with Africa, Asia, and Latin America. Importantly, this wave included only" vertical FDI," with plantations, first-stage processing, and trade" entrepots" in those regions and second-stage transformation and receiving facilities in the home countries.

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