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Can small and medium multinational enterprises offer an alternative to multinational corporations in African countries? Evidence from Nigeria

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  • Evelyn Wamboye
  • Abel Adekola

Abstract

Promotion of private investment is a necessity for capital formation in African countries. Foreign private investment in particular, is considered to be a source of the scarce capital resources, valuable technological know-how and corporate norms and practices. However, given the political unpredictability, lack of sufficient infrastructures, inadequate human capital and local technological capacities in these countries, attracting foreign investors outside of the natural resources sector, especially multinational corporations, has been a troubling concern to the policy makers in the region. Using Nigeria as our case study, we attempt to answer the following two questions: Are the small and medium multinational enterprises (SMMEs) an alternative to the traditional larger multinational corporations (MNCs) that have eluded African countries? What are the motivations and investment characteristics of the SMMEs? We evaluate these issues using primary data.

Suggested Citation

  • Evelyn Wamboye & Abel Adekola, 2013. "Can small and medium multinational enterprises offer an alternative to multinational corporations in African countries? Evidence from Nigeria," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 6(3), pages 279-295.
  • Handle: RePEc:ids:ijepee:v:6:y:2013:i:3:p:279-295
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    Cited by:

    1. Elena Popkova & Alexander Natsubidze & Elena Kukina & Viktor Urodovskikh & Elena Ioda & Nadezhda Neustrova, 2015. "Problems and Perspectives of Implementation of Cluster Initiatives in Business in Developing Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 187-196.
    2. Asongu, Simplice & Batuo, Enowbi & Tchamyou, Vanessa, 2015. "Bundling Governance: Finance versus Institutions in Private Investment Promotion," MPRA Paper 71170, University Library of Munich, Germany.

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