2000 Volume 2 Pages 14-24
This article analyses the international specialization of food industry among East Asian countries by using international input-output table and the linkages with foreign direct investment in the region. The following conclusions are drawn. First, international specialization of food industry among East Asian countries has changed since the 1980s due to the increase in foreign direct investment in these countries by the Japanese food processing industry. Secondly, not only the food processing industry but also the distribution industry has joined in scramble for foreign direct investment, causing competition between the two industries. Thirdly, the increase in the import of processed food has damaged the small-scale, domestic food manufacturing firms in Japan. Finally, along with the rise in the standard of living in East Asia, stiff competition among multinational corporations has arisen.
