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FDI and Local Linkages in Developing Countries: Evidence from Sub-Saharan Africa

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  • Amendolagine, Vito
  • Boly, Amadou
  • Coniglio, Nicola Daniele
  • Prota, Francesco
  • Seric, Adnan

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 finalmarket 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.

Suggested Citation

  • Amendolagine, Vito & Boly, Amadou & Coniglio, Nicola Daniele & Prota, Francesco & Seric, Adnan, 2013. "FDI and Local Linkages in Developing Countries: Evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 50(C), pages 41-56.
    • Handle: RePEc:eee:wdevel:v:50:y:2013:i:c:p:41-56
    DOI: 10.1016/j.worlddev.2013.05.001
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