Patterns of Foreign Direct Investment Flows and Trade-Investment Inter-Linkages in Southern Africa : Linking Middle-Income and Low-Income Neighbors

This report discusses the patterns of foreign direct investment flows and trade-investment inter-linkages in Southern Africa. It will discuss how cross-border investment flows create a possible channel of growth spillover from South Africa and other MICs to LICs in the subregion, and identify the roles of subregional trade and investment flows in generating these neighborhood effects with LICs. After an introduction with background on the subregion of Southern Africa, Section 2 provides facts on the patterns of trade in Southern African countries to illustrate how much (or little) the Southern African subregion is integrated today and whether or not intraregional trade is growing. Section 3 presents aggregate trends in foreign direct investment flows (and stocks) in SSA, discusses how SASR is situated in such trends, and analyzes the emerging trends of intra-SASR cross-border investments, largely driven by South Africa. Section 4 analyzes trade-investment linkages in Southern Africa at the firm level. Section 5 discusses areas of domestic policies in enhancing trade and foreign direct investment in Southern Africa. Section 6 summarizes the findings from this analysis and discusses their policy implications.

Bibliographic Details

Main Authors:	Isik, Gozde, Yoshino, Yutaka
Language:	English en_US
Published:	World Bank, Washington, DC 2010-05
Subjects:	AFFILIATED FIRMS, AGGREGATE TRENDS, AGRICULTURE, APARTHEID, APPAREL, BILATERAL TRADE, BILATERAL TRADE DATA, BORDER CROSSINGS, BORDER TRADE, BUSINESS ENVIRONMENT, CAPITAL INFLOWS, CAPITAL INTENSITY, CAPITAL PER WORKER, CENTRAL BANK, COMMODITY, COMMODITY TRADE, COMMUNICATION TECHNOLOGIES, COMPANY MANAGEMENT, COMPARATIVE ADVANTAGE, CONVERGENCE, CORPORATE OWNERSHIP, COUNTRY GROWTH, CROSS-BORDER TRADE, CROSS-BORDER TRANSACTION, CROSS-BORDER TRANSACTIONS, CUSTOMS, CUSTOMS ADMINISTRATION, CUSTOMS CLEARANCE, CUSTOMS POLICIES, DEVELOPING COUNTRIES, DOMESTIC ECONOMY, DOMESTIC ENTERPRISES, DOMESTIC FIRMS, DOMESTIC INVESTMENT, DOMESTIC INVESTMENT CLIMATE, DOMESTIC MARKETS, DUTY-FREE ACCESS, ECONOMETRIC ANALYSIS, ECONOMIC COMMUNITY, ECONOMIC CRISIS, ECONOMIC EFFICIENCY, ECONOMIC INEFFICIENCY, ECONOMIC INTEGRATION, ECONOMIC OUTLOOK, ECONOMIC PARTNERSHIP AGREEMENTS, ECONOMIC RESEARCH, ECONOMIC SURVEYS, ECONOMIES OF SCALE, ENTRY POINTS, EPZ, EXCHANGE RATE, EXPORT INTENSITY, EXPORT MARKET, EXPORT MARKETS, EXPORT ORIENTATION, EXPORT PERFORMANCE, EXPORT PROCESSING, EXPORT PROCESSING ZONE, EXPORT VALUE, EXPORTERS, EXPORTS, EXTRA-REGIONAL TRADE, FINANCIAL COMPANIES, FINANCIAL CRISIS, FINANCIAL FLOWS, FINANCIAL SERVICES, FOREIGN COMPANIES, FOREIGN DIRECT INVESTMENT, FOREIGN FIRM, FOREIGN FIRMS, FOREIGN INVESTMENT, FOREIGN INVESTMENTS, FOREIGN INVESTORS, FOREIGN NATIONALS, FOREIGN OWNERS, FOREIGN OWNERSHIP, FOREIGN SHARE, FOREIGN WORKERS, FORMAL TRADE, FREE ACCESS, GDP, GLOBAL EXPORT, GLOBAL EXPORTS, GLOBAL MARKETS, GRAVITY MODEL, GRAVITY MODELS, GROWING TRADE, GROWTH RATE, HOLDING COMPANIES, HOLDING COMPANY, HORIZONTAL RESTRICTIONS, IMPORTED INPUTS, INCOME, INDIVIDUAL FIRMS, INEFFICIENCY, INSURANCE, INSURER, INTERMEDIATE GOODS, INTERNATIONAL PRODUCTION, INTERNATIONAL TRADE, INTRAREGIONAL TRADE, INVESTMENT CLIMATE, INVESTMENT CLIMATE CONSTRAINTS, INVESTMENT FLOWS, INVESTMENT INTEGRATION, INVESTMENT POLICIES, INVESTMENT REGIMES, INVESTOR PROTECTION, JOINT VENTURE, LABOR MARKET, LABOR PRODUCTIVITY, LANDLOCKED COUNTRIES, LOCAL LABOR, LOW-INCOME COUNTRIES, MANUFACTURING INDUSTRIES, MERCHANDISE TRADE, MIDDLE INCOME COUNTRIES, MIDDLE-INCOME COUNTRIES, MIDDLE-INCOME COUNTRY, MONOPOLISTIC COMPETITION, MONOPOLY, MULTINATIONAL CORPORATIONS, NATIONAL OUTPUT, NATURAL RESOURCE, NATURAL RESOURCES, NEGATIVE EXTERNALITIES, NEIGHBORING COUNTRIES, OLIGOPOLY, OUTPUTS, OWNERSHIP STRUCTURE, PATTERNS OF TRADE, POSITIVE EXTERNALITIES, PRIVATE CAPITAL, PRIVATE CAPITAL FLOWS, PRIVATIZATION, PRODUCTIVITY, PRODUCTIVITY GROWTH, PROTECTING INVESTORS, PUBLIC ENTITIES, PUBLIC GOODS, PUBLIC POLICIES, RAPID GROWTH, REGIONAL GROUPS, REGIONAL INTEGRATION, REGIONAL TRADE, REGULATOR, RESERVE BANK, SPATIAL ECONOMICS, STANDARD ERRORS, STATE OWNED BANKS, STRUCTURAL SHIFT, SUNK COSTS, TAX, TECHNOLOGICAL CAPABILITIES, TELECOMMUNICATIONS, TELEPHONE SERVICES, TERMS OF TRADE, TRADE FACILITATION, TRADE LOGISTICS, TRADE POLICIES, TRADING SYSTEM, TRANSACTION COSTS, TRANSPARENCY, TRANSPORT EQUIPMENT, TRANSPORT SECTOR, TRANSPORT SERVICES, UNSKILLED LABOR, VERTICAL INTEGRATION, VOLUME OF TRADE, WORLD INVESTMENT, WORLD INVESTMENT REPORT, WORLD TRADING SYSTEM,
Online Access:	http://documents.worldbank.org/curated/en/2010/05/16345504/africa-patterns-foreign-direct-investment-flows-trade-investment-inter-linkages-southern-africa-linking-middle-income-low-income-neighbors https://hdl.handle.net/10986/12990
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