HUMAN DEVELOPMENT EFFECTS OF FOOD MANUFACTURING FOREIGN DIRECT INVESTMENT

Abstract

Whilst some studies explored the effect of food manufacturing foreign direct investment (FMFDI) on microeconomic and macroeconomic indicators, the human development effect, which is the ultimate for economic management, remains unexplored. This study does that with a focus on developing and developed countries. An unbalanced panel data of 44 (18 developing and 26 developed) countries from 1991 to 2018 with a fixed-effects and general method of moments estimators were employed. Developing countries' FMFDI positively influenced the human development of the total economy. Also, developed countries' FMFDI positively influenced the human development of the total economy. Developing country economic managers should improve the macroeconomic environment to promote foreign direct investment into the food manufacturing subsector. There is a need for a reallocation of FMFDI to developing countries. International bodies such as the United Nations Conference on Trade and Development would be useful in this direction.

Keywords

• developed countries
• developing countries
• food processing
• foreign investment
• welfare