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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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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 38 (2010)
Issue (Month): 8 (August)
Pages: 1114-1126

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Handle: RePEc:eee:wdevel:v:38:y:2010:i:8:p:1114-1126

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: foreign direct investment productivity spillovers firm level data Africa Ghana;

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Citations

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Cited by:
  1. Czibik, Ágnes & Makó, Ágnes, 2009. "Kiszolgáltatottság és ösztönző erő a kiskereskedelmi láncok és beszállítóik kapcsolatában. Oksági elemzés beszállítói szemszögből
    [Defencelessness and incentive in the relation
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 359-378.
  2. Neil Foster-McGregor & Anders Isaksson & Florian Kaulich, 2014. "Importing, exporting and performance in sub-Saharan African manufacturing firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 150(2), pages 309-336, May.
  3. Earle, John S. & Telegdy, Álmos & Antal, Gábor, 2012. "FDI and Wages: Evidence from Firm-Level and Linked Employer-Employee Data in Hungary, 1986-2008," IZA Discussion Papers 7095, Institute for the Study of Labor (IZA).
  4. Mebratie, Anagaw Derseh & Bedi, Arjun S., 2011. "Foreign Direct Investment, Black Economic Empowerment and Labour Productivity in South Africa," IZA Discussion Papers 6048, Institute for the Study of Labor (IZA).
  5. Philipp Harms & Pierre-Guillaume Méon, 2011. "An FDI is an FDI is an FDI? The growth effects of greenfield investment and mergers and acquisitions in developing countries," Working Papers 11.10, Swiss National Bank, Study Center Gerzensee.
  6. Holger Görg & Adnan Seric, 2013. "With a little help from my friends: Supplying to multinationals, buying from multinationals, and domestic firm performance," Kiel Working Papers 1867, Kiel Institute for the World Economy.
  7. John S. Earle & Almos Telegdy & Gabor Antal, 2012. "FDI and Wages: Evidence from Firm-Level and Linked Employer-Employee Data in Hungary, 1986-2008," Budapest Working Papers on the Labour Market 1209, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  8. Mebratie, A.D. & van Bergeijk, P.A.G., 2011. "Firm Heterogeneity and Development: A Meta Analysis of FDI Productivity Spill-overs," ISS Working Papers - General Series 525, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.

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