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Determinants of FDI Spillover in the Kenyan Manufacturing Industry: Firm-Level Evidence

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  • Geoffrey G. Gachino

    (Faculty of Business Administration, University of Dubai, United Arab Emirates)

Abstract

Technological spillovers from foreign direct investment and their determinants and impacts in a host country¡¦s growth process are some of the most widely debated issues in development economics. The proponents of endogenous growth theory and evolutionary economics contend strongly that spillovers have positive ramifications for economic growth. This paper adopts a framework re-conceptualizing spillovers in terms of learning and capability building to examine the determinants of spillovers in the Kenyan manufacturing industry. From the results, key determinants of spillovers included systemic support structure, absorptive capacity, firm learning, systemic embeddedness, firm training, and trade orientation. The findings provide possible implications for policy makers.

Suggested Citation

  • Geoffrey G. Gachino, 2011. "Determinants of FDI Spillover in the Kenyan Manufacturing Industry: Firm-Level Evidence," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 10(3), pages 235-255, December.
    • Handle: RePEc:ijb:journl:v:10:y:2011:i:3:p:235-255
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    References listed on IDEAS

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    More about this item

    Keywords

    foreign direct investment; technological spillovers; technological learning; systemic support structure; systemic embeddedness; Kenya;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy

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