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Foreign Direct Investment In Sub‐Saharan Africa: Changing Location‐Specific Advantages As Signals Of Competitiveness

Author

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  • Frank L. BARTELS
  • Markus EICHER
  • Christopher BACHTROG
  • Gorazd REZONJA

Abstract

This paper uses longitudinal factor analysis of location‐specific advantages that are relevant to the foreign direct investment decisions of multinational enterprises (MNEs) in sub‐Saharan Africa (SSA) to signal changes in location competitiveness. A total of 1,216 responses by MNEs to a survey in 15 SSA countries are analyzed. We find that, first, over a three‐year period (2002–5), MNEs perceive a positive change in the market‐servicing environment in SSA. Second, MNEs find negative changes in SSA regarding the availability of input factors and characteristics of market demand.

Suggested Citation

  • Frank L. BARTELS & Markus EICHER & Christopher BACHTROG & Gorazd REZONJA, 2009. "Foreign Direct Investment In Sub‐Saharan Africa: Changing Location‐Specific Advantages As Signals Of Competitiveness," The Developing Economies, Institute of Developing Economies, vol. 47(3), pages 244-278, September.
    • Handle: RePEc:bla:deveco:v:47:y:2009:i:3:p:244-278
    DOI: 10.1111/j.1746-1049.2009.00086.x
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