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

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  • van der Ven Colette M.A.

    (Sidley Austin LLPGeneva, Switzerland)

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.

Suggested Citation

  • van der Ven Colette M.A., 2018. "Inclusive Industrialization: The Interplay Between Investment Incentives and SME Promotion Policies in Sub-Saharan Africa," The Law and Development Review, De Gruyter, vol. 11(2), pages 557-587, December.
    • Handle: RePEc:bpj:lawdev:v:11:y:2018:i:2:p:557-587:n:11
    DOI: 10.1515/ldr-2018-0029
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    References listed on IDEAS

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    Cited by:

    1. Adebakin Moruf Akanni & Okon Samuel Essien, 2019. "Procedural justice, job satisfaction and organisational citizenship behaviour within small and medium scale enterprises in Nigeria," Journal of Economics and Management, Sciendo, vol. 38(4), pages 5-25, December.

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