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

Boly, Amadou; Coniglio, Nicola D.; Prota, Francesco; Šerić, Adnan

doi:10.1111/dpr.12130

Cited by 18 publications

(31 citation statements)

References 24 publications

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“…Noting that most developing countries are challenged by prevailing corrupt leadership (Jo-Ansie, 2007;Olken and Pande, 2011;Asongu, 2013a, b;Kim, 2013;Efobi, 2014), therefore, recommending 'blanket' foreign aid increase as a remedying tool for anti-terrorism financing may not be sustainable to have a lasting effect. Third, relevant empirical evidence to illustrate how global efforts towards the sustenance of FDI flow to developing countries is required since FDI stands out as a major source of foreign capital flow for developing countries (Asiedu, 2006;Asiedu and Lien, 2011;Boly, Coniglio, Prota and Seric, 2015). This paper presents marked difference from similar studies (e.g.…”

Section: Introductionmentioning

confidence: 82%

Foreign Direct Investment, Aid and Terrorism: Empirical Insight Conditioned on Corruption Control

2015

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This study checks the effect of foreign aid on terrorism and FDI, conditioned on domestic levels of corruption-control (CC). The empirical evidence is based on a sample of 78 countries for the period 1984-2008. The following findings are established: the negative effect of terrorism on FDI is apparent only in higher levels of CC; foreign aid dampens the negative effect of terrorism on FDI only in higher levels of CC; when foreign aid is subdivided into its bilateral and multilateral components, the result is mixed. While our findings are in accordance with the stance that bilateral aid is effective in reducing the adverse impact of transnational terrorism, the position that only multilateral aid is effective at mitigating the adverse impact of domestic terrorism on FDI is not confirmed because multilateral aid also curbs the adverse effect of transnational terrorism on FDI. Moreover, multilateral aid also decreases the adverse effect of unclear and total terrorisms on FDI. Policy implications are discussed.JEL Classification: D74; F21; F35

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Section: Introductionmentioning

confidence: 82%

Foreign Direct Investment, Aid and Terrorism: Empirical Insight Conditioned on Corruption Control

2015

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“…By contrast, Görg and Strobl (2005), using matched employer-employee data for Ghana, find positive productivity effect for domestic firms through movement of workers from multinationals to domestic firms. 5 Boly et al (2012), also using data from the African Investor Survey, use information on firms' self-assessment of the impact of foreign affiliates' presence on their overall business performance. They find, inter alia, that larger, newly established and more productive domestic firms are more likely to benefit from interactions with foreign affiliates.…”

Section: Introductionmentioning

confidence: 99%

Linkages with Multinationals and Domestic Firm Performance: The Role of Assistance for Local Firms

Görg

Šerić

2016

Eur J Dev Res

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This article uses firm-level data for 19 African countries to look at the link between domestic firms' business relationship with multinationals and their performance in terms of innovation and productivity. Quite uniquely, we also evaluate the importance of support received by the domestic firm, either from the government or the multinational business partner, for this link. Overall, our data analysis shows that for the average domestic firm, supplying to a foreign multinational in the country is positively associated with product innovation. Buying from a multinational is positively associated with labour productivity. These results are independent of any type of support from the government or multinationals. By contrast, we also find that domestic firms' process innovation activity is only positively associated with supplying a multinational if the firm also receives assistance from the government or multinational. Furthermore, we find that supplying a multinational is only positively associated with domestic firms' productivity if the firm received technology transfer from the multinational customers.Nous utilisons les données de 19 pays africains pour examiner le lien entre la relation d'affaires qu'ont les entreprises nationales avec les multinationales et leur degrès d'innovation ainsi que leur productivité. Nous évaluons également l'importance du soutien reçu par l'entreprise nationale, que ce soit de la part du gouvernement ou de l'entreprise multinationale partenaire. Dans l'ensemble, notre analyse des données montre que, pour l'entreprise nationale moyenne, le fait d'être le fournisseur d'une multinationale étrangère implantée dans le pays est associé à l'innovation des produits. Le fait d'acheter à une multinationale est associé à la productivité du travail. Ces résultats sont obtenus indépendemment de tout type de soutien gouvernemental ou des multinationales. En revanche, nous constatons aussi que l'innovation de procédé au sein des entreprises nationales n'est associée au fait d'être le fournisseur d'une multinationale que si l'entreprise reçoit également l'aide du gouvernement ou d'une multinationale. En outre, nous constatons qu'être fournisseur d'une multinationale n'est associé à la productivité des entreprises nationales que si l'entreprise a reçu le transfert de technologie des clients multinationaux.

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“…The empirical evidence is important to the stylized facts enunciated in the first paragraph of this introduction because of current global efforts towards sustaining external flows like FDI in developing countries (Asiedu, 2006;Asiedu & Lien, 2011;Apkan et al, 2014;Boly, et al, 2015;Asongu & Kodila-Tedika, 2015b;Asongu & Nwachukwu, 2015b). …”

Section: Introductionmentioning

confidence: 99%