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Foreign firms in core or peripheral areas? The spatial dimension of job creation and wages in Sub‐Saharan Africa

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  • Michele Binetti
  • Nicola D. Coniglio

Abstract

This paper investigates the within‐country location choices of a large sample of foreign and domestic firms in 19 Sub‐Saharan African countries. We show that foreign firms are more likely to locate in core regions compared to domestic ones but generate significantly more jobs per productive unit in the periphery. We find some evidence that foreign firms generate relatively better jobs in peripheral areas: more skill intensive and better paid. These results highlight a fundamental role that FDI in peripheral areas might play in rebalancing the spatial distribution of economic opportunities in developing countries where highly congested megacities exercise a strong centripetal force. Este artículo investiga la elección de la localización en el interior de los países de una amplia muestra de empresas extranjeras y nacionales en 19 países del África Subsahariana. Se demuestra que es mÁs probable que las empresas extranjeras se ubiquen en las regiones centrales que las nacionales, pero que generan significativamente mÁs puestos de trabajo por unidad productiva en la periferia. Se encontró evidencia de que las empresas extranjeras generan empleos relativamente mejores en las zonas periféricas: mÁs cualificados y mejor remunerados. Estos resultados ponen de relieve el papel fundamental que podría desempeñar la IED en las zonas perifé;ricas para reequilibrar la distribución espacial de las oportunidades económicas en los países en desarrollo, en los que las megalópolis altamente congestionadas ejercen una enorme fuerza centrípeta. 本稿では、サブサハラ・アフリカ地域の19カ国における大規模サンプルを用いて、外国企業および国内企業の国内における立地選択を検討する。外国企業は、国内企業よりもコアリージョンに立地する傾向が強いが、周辺地域における生産単位あたりの仕事を著明に多く創出していることを示す。外国企業は、周辺地域において相対的により良い (すなわち、技術集約型である傾向が強く、給与が高い)仕事を創出していることを示すエビデンスが得られた。この結果は、国外からの周辺地域への直接投資が、密集度の高いメガシティが強い求心力を持っている開発途上国における経済的機会の空間的分布の最均衡化を図るのに、国外からの直接投資が果たす可能性のある根本的な役割を明確に示している。

Suggested Citation

  • Michele Binetti & Nicola D. Coniglio, 2019. "Foreign firms in core or peripheral areas? The spatial dimension of job creation and wages in Sub‐Saharan Africa," Papers in Regional Science, Wiley Blackwell, vol. 98(6), pages 2233-2250, December.
  • Handle: RePEc:bla:presci:v:98:y:2019:i:6:p:2233-2250
    DOI: 10.1111/pirs.12466
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