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Document Type

Thesis - University Access Only

Award Date


Degree Name

Master of Science (MS)

Department / School


First Advisor

Evert Van der Sluis


This thesis examines the determinants of foreign direct investment and its relationship to trade in the U.S. food processing industry. U.S. exports of processed food products and sales by foreign affiliates in the food processing industry have been increasing over the years. A multinational corporation maximizes profits by deciding between production in their facilities within the home country, part of which is then exported, or production in a foreign country. This raises the question of whether foreign affiliate sales are complements and/or substitutes for exports. This thesis seeks to answer this question by extending earlier studies, using two econometric procedures a panel unit root tests and panel regression. Each procedure measures a specific aspect of the interaction between FDI, sales by foreign affiliates, and exports and affiliate employment. The results of the analysis confirm a complementary relationship between foreign affiliate sales and exports.

Library of Congress Subject Headings

Food industry and trade--United States
Investments, Foreign
Export marketing


Includes bibliographical references (page 58-63)



Number of Pages



South Dakota State University



Rights Statement

In Copyright