Economic analysis of incentives for foreign direct investment in beef systems in Argentina and Uruguay

Eric Thor, Dee Von Bailey, Alejandro R. Silva, Steven S. Vickner

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

The European Union's (EU) ban of hormone-treated beef products in 1989 has virtually eliminated beef exports to the EU from countries where cattle are routinely implanted with growth hormones. This study examined whether or not foreign direct investment in beef systems in Argentina and Uruguay would provide a profitable method for investors who want to export beef to the EU. The results indicate that while investment in these systems is potentially profitable, government interventions designed to keep domestic beef prices low inject considerable risk into the investment decision.

Original languageEnglish (US)
Pages (from-to)19-40
Number of pages22
JournalInternational Food and Agribusiness Management Review
Volume10
Issue number3
StatePublished - Sep 28 2007

Keywords

  • Cointegration
  • Investment in beef systems
  • Risk
  • South America

ASJC Scopus subject areas

  • Food Science
  • Business and International Management

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