Globalisation in agriculture and food: the role of multinational enterprises

Abstract

This paper reviews the state-of-the-art work on agri-food Multinational Enterprises (MNEs), by discussing the current state-of-play and the tools at our disposal to expand knowledge. After a critical discussion of available data, new data from OECD are used to provide a broad overview of the role of MNEs in the agri-food Global Value Chains (GVCs) and to draw a few stylized facts. Data reveals that in the food, beverages and tobacco industry MNE activity is higher than on average, while in agriculture it is lower; North-South flows are increasing as well as the role of MNE in the agri-food GVCs. The review of theoretical and of empirical literature shows how modern trade theories provide us with a strong theoretical background which, together with improved firm-level and country-level data, may help explaining observed patterns and effectively orientate empirical analyses of agri-food MNEs in several directions.