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FDI and Local Linkages in Developing Countries: Evidence from Sub-Saharan Africa

  • Amendolagine, Vito
  • Boly, Amadou
  • Coniglio, Nicola Daniele
  • Prota, Francesco
  • Seric, Adnan

This paper investigates the determinants of backward linkages of foreign manufacturing firms in 19 Sub-Saharan African countries. We shed light on the micro and macro level factors which contribute to a higher degree of interactions between foreign subsidiaries and local firms. Our results indicate that the time since entry of foreign firms, the presence of a local partner in the ownership structure and a finalmarket orientation are associated with higher local linkages. Finally, we lend further support to the idea that good institutions and in particular a reliable legal system are pre-conditions for boosting the linkages generated by foreign firms.

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Article provided by Elsevier in its journal World Development.

Volume (Year): 50 (2013)
Issue (Month): C ()
Pages: 41-56

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Handle: RePEc:eee:wdevel:v:50:y:2013:i:c:p:41-56
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