IDEAS home Printed from
   My bibliography  Save this article

Which Domestic Firms Benefit from FDI? Evidence from Selected African Countries


  • Amadou Boly
  • Nicola D. Coniglio
  • Francesco Prota
  • Adnan Seric


type="main" xml:id="dpr12130-abs-0001"> The existing literature on the effects of FDI inflows on domestic firms' performance offers ambiguous evidence. Macro-level studies suggest that the characteristics of inward FDI and the ‘absorptive capacity’ of the host economy matter in determining the sign (or the mere existence) of these effects. Studies based on micro-level data have so far mostly focused on finding a nexus between FDI inflows and the productivity of domestic firms, suggesting that the effects might be highly heterogeneous. This article, using a recent firm-level survey conducted by UNIDO in 19 sub-Saharan African countries, explores the channels through which multinational enterprises may exert an impact on local firms: products’ market, input availability and costs, access to finance and export opportunities, and analyses the strategic reactions of domestic firms induced by the presence of foreign affiliates.

Suggested Citation

  • Amadou Boly & Nicola D. Coniglio & Francesco Prota & Adnan Seric, 2015. "Which Domestic Firms Benefit from FDI? Evidence from Selected African Countries," Development Policy Review, Overseas Development Institute, vol. 33(5), pages 615-636, September.
  • Handle: RePEc:bla:devpol:v:33:y:2015:i:5:p:615-636

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Asongu, Simplice & Efobi, Uchenna & Beecroft, Ibukun, 2015. "FDI, Aid, Terrorism: Conditional Threshold Evidence from Developing Countries," EconStor Preprints 114569, ZBW - Leibniz Information Centre for Economics.
    2. Yassin Elshain Yahia & Liu Haiyun & Muhammad Asif Khan & Sayyed Sadaqat Hussain Shah & Mollah Aminul Islam, 2018. "The Impact of Foreign Direct Investment on Domestic Investment: Evidence from Sudan," International Journal of Economics and Financial Issues, Econjournals, vol. 8(6), pages 1-10.
    3. Uchenna, Efobi & Asongu, Simplice & Ibukun, Beecroft, 2015. "Foreign Direct Investment, Aid and Terrorism: Empirical Insight Conditioned on Corruption Control," MPRA Paper 67304, University Library of Munich, Germany.
    4. Simplice Asongu & Uchenna R. Efobi & Ibukun Beecroft, 2017. "Aid in Modulating the Impact of Terrorism on FDI: No Positive Thresholds, No Policy," Working Papers of the African Governance and Development Institute. 17/061, African Governance and Development Institute..
    5. Moran, Theodore H. & Görg, Holger & Seric, Adnan & Krieger-Boden, Christiane, 2017. "How to Attract Quality FDI?," KCG Policy Papers 2, Kiel Centre for Globalization (KCG).
    6. Moran, Theodore H. & Görg, Holger & Seric, Adnan, 2016. "Quality FDI and Supply-Chains in Manufacturing: Overcoming Obstacles and Supporting Development," KCG Policy Papers 1, Kiel Centre for Globalization (KCG).
    7. Görg, Holger & Seric, Adnan, 2013. "With a little help from my friends: Supplying to multinationals, buying from multinationals, and domestic firm performance," Kiel Working Papers 1867, Kiel Institute for the World Economy (IfW).
    8. Vito Amendolagine & Nicola D. Coniglio, 2014. "Economic Enclaves or Bridges to the Global Economy? Foreign and Diaspora Investments in Developing Countries," RSCAS Working Papers 2014/10, European University Institute.
    9. Holger Görg & Adnan Seric, 2016. "Linkages with Multinationals and Domestic Firm Performance: The Role of Assistance for Local Firms," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 28(4), pages 605-624, September.
    10. Penelope Pacheco-Lopez, 2014. "Contrasting the Perception and Response of Domestic Manufacturing Firms to FDI in Sub-Saharan Africa," Studies in Economics 1410, School of Economics, University of Kent.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:devpol:v:33:y:2015:i:5:p:615-636. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley Content Delivery). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.