Economic Analysis of Incentives for Foreign Direct Investment in Beef Systems in Argentina and Uruguay

Authors

Eric P. Thor III, Utah State UniversityFollow
DeeVon Bailey, Utah State UniversityFollow
Alejandro R. Silva
Steven S. Vickner, Utah State UniversityFollow

Document Type

Article

Journal/Book Title/Conference

International Food and Agribusiness Management Review

Volume

10

Issue

3

Publication Date

2007

First Page

19

Last Page

40

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.

Recommended Citation

Thor, Eric III, DeeVon Bailey, Alejandro R. Silva, and Steven S. Vickner. “Economic Analysis of Incentives for Foreign Direct Investment in Beef Systems in Argentina and Uruguay.” International Food and Agribusiness Management Review. 10,3(2007): 19-40.