Outward Foreign Direct Investment, Exporting and Firm-Level Performance in Sub-Saharan Africa
AbstractThis paper adds to the small but growing literature that considers a relationship between the way a firm serves foreign markets and its subsequent performance. The current paper is the first to consider this issue for a sample of sub-Saharan African countries and includes data on both manufacturing and services firms. Results from a number of parametric and non-parametric tests for manufacturing industries indicate that there is a clear productivity ordering with firms undertaking outward FDI performing best, followed by exporters with domestically oriented firms performing least well. The results for services firms are more nuanced and indicate that while exporters and firms undertaking outward FDI are more productive than domestically oriented firms, there is no significant difference in productivity between these two types of firms. Despite this, average productivity and point estimates from the regression analysis on services firms suggest that the productivity of exporting firms is larger than that for firms undertaking outward FDI.
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Bibliographic InfoPaper provided by The Vienna Institute for International Economic Studies, wiiw in its series wiiw Working Papers with number 97.
Length: 23 pages including 9 Tables and 9 Figures
Date of creation: Mar 2013
Date of revision:
Publication status: Published as wiiw Working Paper
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
This paper has been announced in the following NEP Reports:
- NEP-AFR-2013-08-23 (Africa)
- NEP-ALL-2013-08-23 (All new papers)
- NEP-CSE-2013-08-23 (Economics of Strategic Management)
- NEP-DEV-2013-08-23 (Development)
- NEP-EFF-2013-08-23 (Efficiency & Productivity)
- NEP-INT-2013-08-23 (International Trade)
- NEP-SBM-2013-08-23 (Small Business Management)
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