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Foreign Presence, Spillovers, and Productivity: Evidence from Ghana

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  • Waldkirch, Andreas
  • Ofosu, Andra

Abstract

Summary This paper investigates the effect of foreign presence at the sector and firm levels on the productivity of manufacturing firms in Ghana. We examine both labor and total factor productivity (TFP) and control for a number of observed factors as well as unobserved heterogeneity. We find robust evidence that the presence of foreign firms in a sector has a negative effect on domestically owned, but a positive effect on most foreign-owned firms. Unlike in recent work on China, it does not appear that the negative level effect is compensated for by a positive growth effect, at least not in any reasonable time period. We find no evidence of any wage effects.

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  • Waldkirch, Andreas & Ofosu, Andra, 2010. "Foreign Presence, Spillovers, and Productivity: Evidence from Ghana," World Development, Elsevier, vol. 38(8), pages 1114-1126, August.
    • Handle: RePEc:eee:wdevel:v:38:y:2010:i:8:p:1114-1126
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    More about this item

    Keywords

    foreign direct investment productivity spillovers firm level data Africa Ghana;

    JEL classification:

    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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