Foreign Acquisitions Impact on Output, Wages, and Employment in the United States Agrifood Industry

This study evaluates the economic impacts of foreign mergers and acquisitions (M&As) in the United States agrifood sector from 2010–2019. We discover differential effects based on the type of country from which the acquiring company originates. M&As from developing countries negatively affect gross domestic product and employment, suggesting a strategy of acquiring capabilities and resources rather than improving productivity. We find that Chinese acquisitions are associated with higher wages and employment, though the effect on output is mixed. Conversely, M&As from developed countries are associated with decreased wages and employment, likely from implementing advanced technologies that reduce labor needs.