| Through this research five different analyses for the food, beverage and tobacco (FB&T) sub-industry, the dairy, and grain and oilseeds manufacturing sectors will be undertaken. Our analyses will look at the factors that drive FDI into the Canadian agri-food industry, the effects of FDI on trade, as well as its effect on productivity growth. The multinationals (MNE's) choice of entry mode, and a Granger causality analysis will also be subject of our analysis.;The results show a complementary effect of FDI on trade for the (FB&T) sub industry as well as for the grain and oilseeds sector. Findings on the determinants of FDI were also consistent with our expectations. However results of the R&D spillovers effects on productivity growth suggest that MNE's may be exploiting location advantages without generating technological benefits for domestic firms. The choice of entry mode reflects strong protection of proprietary knowledge by MNE's in Canada. |
