FDI and Local Linkages: Evidence from Selected African Countries

World Development, 50, p. 41-56. DOI: 10.1016/j.worlddev.2013.05.001

Posted: 17 Jul 2014

See all articles by Vito Amendolagine

Vito Amendolagine

Università degli Studi di Bari “Aldo Moro” (UNIBA) - Faculty of Economics

Amadou Boly

African Development Bank

Nicola D. Coniglio

Università degli Studi di Bari “Aldo Moro” (UNIBA) - Department of Economics and Mathematical Methods

Francesco Prota

University of Bari - Department of Economics and Finance

Adnan Seric

United Nations Industrial Development Organization (UNIDO)

Date Written: October 2013

Abstract

This paper investigates the determinants of backward linkages of foreign manufacturing firms in 19 Sub-Saharan African countries. We shed light on the micro and macro level factors which contribute to a higher degree of interactions between foreign subsidiaries and local firms. Our results indicate that the time since entry of foreign firms, the presence of a local partner in the ownership structure and a final market orientation are associated with higher local linkages. Finally, we lend further support to the idea that good institutions and in particular a reliable legal system are pre-conditions for boosting the linkages generated by foreign firms.

Keywords: foreign direct investments; backward linkages; Africa

Suggested Citation

Amendolagine, Vito and Boly, Amadou and Coniglio, Nicola D. and Prota, Francesco and Seric, Adnan, FDI and Local Linkages: Evidence from Selected African Countries (October 2013). World Development, 50, p. 41-56. DOI: 10.1016/j.worlddev.2013.05.001, Available at SSRN: https://ssrn.com/abstract=2466870

Vito Amendolagine

Università degli Studi di Bari “Aldo Moro” (UNIBA) - Faculty of Economics ( email )

Piazza Cesare Battisti 1
Bari, Taranto 70121
Italy

Amadou Boly (Contact Author)

African Development Bank ( email )

Rue Joseph Anoma
Abidjan, Ivory Coast 01 BP 1387
Ivory Coast (Cote D'ivoire)

Nicola D. Coniglio

Università degli Studi di Bari “Aldo Moro” (UNIBA) - Department of Economics and Mathematical Methods ( email )

Largo Abbey St. Scholastica
Bari, 70124
Italy

HOME PAGE: http://www.dse.uniba.it/Corsi/docenti/Coniglio/Nicola_paginaWeb.htm

Francesco Prota

University of Bari - Department of Economics and Finance ( email )

Largo Abbey St. Scholastica
Bari, 70124
Italy

HOME PAGE: http://www.uniba.it/docenti/prota-francesco

Adnan Seric

United Nations Industrial Development Organization (UNIDO) ( email )

Wagramer Strasse 5
P.O. Box 300
Vienna, A-1400
Austria

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