The Linkages Between FDI and Domestic Investment: Unravelling the Developmental Impact of Foreign Investment in Sub-Saharan Africa
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Organización Internacional del Trabajo (OIT)
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| Format: | Artículo científico |
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International Labour Organization
2008
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| _version_ | 1874525034564812802 |
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| author | Léonce Ndikumana Sher Verick |
| author_facet | Léonce Ndikumana Sher Verick Léonce Ndikumana Sher Verick |
| contents | The Linkages Between FDI and Domestic Investment: Unravelling the Developmental Impact of Foreign Investment in Sub-Saharan Africa Léonce Ndikumana Sher Verick While the recent increase in foreign direct investment (FDI) to African countries is a welcome development, the impact of these resource inflows on economic development remains in doubt. This article argues that a key channel is its effects on domestic factor markets, especially domestic investment, and analyses the two-way linkages between FDI and domestic investment in sub-Saharan Africa. The results suggest, first, that FDI crowds in domestic investment and, secondly, that private investment is a driver of FDI, implying that African countries will gain much from improving the domestic climate. Moreover, there are alternatives to resource endowments as a means of attracting foreign investment to non-resource-rich countries. 10.1111/j.1467-7679.2008.00430.x DOI https://doi.org/10.1111/j.1467-7679.2008.00430.x publication.journalArticle |
| format | Artículo científico |
| id | ilo_995325486902676 |
| institution | Organización Internacional del Trabajo (OIT) |
| publishDate | 2008 |
| publisher | International Labour Organization |
| spellingShingle | The Linkages Between FDI and Domestic Investment: Unravelling the Developmental Impact of Foreign Investment in Sub-Saharan Africa Léonce Ndikumana Sher Verick The Linkages Between FDI and Domestic Investment: Unravelling the Developmental Impact of Foreign Investment in Sub-Saharan Africa Léonce Ndikumana Sher Verick While the recent increase in foreign direct investment (FDI) to African countries is a welcome development, the impact of these resource inflows on economic development remains in doubt. This article argues that a key channel is its effects on domestic factor markets, especially domestic investment, and analyses the two-way linkages between FDI and domestic investment in sub-Saharan Africa. The results suggest, first, that FDI crowds in domestic investment and, secondly, that private investment is a driver of FDI, implying that African countries will gain much from improving the domestic climate. Moreover, there are alternatives to resource endowments as a means of attracting foreign investment to non-resource-rich countries. 10.1111/j.1467-7679.2008.00430.x DOI https://doi.org/10.1111/j.1467-7679.2008.00430.x publication.journalArticle |
| title | The Linkages Between FDI and Domestic Investment: Unravelling the Developmental Impact of Foreign Investment in Sub-Saharan Africa |
| url | https://researchrepository.ilo.org/esploro/outputs/journalArticle/The-Linkages-Between-FDI-and-Domestic/995325486902676 |