Inclusive Industrialization: The Interplay Between Investment Incentives and SME Promotion Policies in Sub-Saharan Africa

Law and Development Review, Volume 11, Issue 2, pp. 557–587

22 Pages Posted: 9 Sep 2018

Date Written: July 28, 2018

Abstract

Most Sub-Saharan African countries have adopted policies to attract foreign direct investment (FDI) and policies to stimulate the growth of small and medium enterprises (SMEs). While a significant body of literature exists analyzing how these objectives can be mutually reinforcing, the negative interplay between these policies remains relatively unexplored. This paper examines whether, and in what circumstances, investment incentives could undermine SME competitiveness and, conversely, whether policies aiming to promote SMEs through encouraging FDI-SME linkages could impede FDI. This paper demonstrates that, absent a comprehensive approach to policy making, tensions invariably arise between investment incentives and SME promotion policies.

Keywords: Sustainable Development Goals, Small and Medium Enterprises, Investment Incentives

Suggested Citation

van der Ven, Colette, Inclusive Industrialization: The Interplay Between Investment Incentives and SME Promotion Policies in Sub-Saharan Africa (July 28, 2018). Law and Development Review, Volume 11, Issue 2, pp. 557–587, Available at SSRN: https://ssrn.com/abstract=3226933 or http://dx.doi.org/10.2139/ssrn.3226933

Colette Van der Ven (Contact Author)

Sidley Austin LLP ( email )

One First National Plaza
Chicago, IL 60603
United States

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