Manufacturing FDI in Sub-Saharan Africa : Trends, Determinants, and Impacts

This report offers five policy recommendations that could contribute to the attraction of manufacturing FDI in Africa. To further the benefits of FDI, especially in the manufacturing sector, policymakers in Africa should: First, manage FDI flows and FDI-related policies in a way that maximizes spillovers in host countries. Second, realize the emergence of FDI from newpartners, especially in manufacturing FDI, and establish platforms that help in the attraction ofnew FDI. Third, increase investment on key infrastructure to overcome constraints for manufacturing activities to develop, especially in power supply and transportation and logistics services. Fourth, take better advantage of the currently dominating market-seeking manufacturing FDI to improve the weak industry base in the shortterm. Market-seeking FDI has a sizeable positivecontribution to the host economy. Fifth, strengthen the linkages between domestic material input and foreign manufacturing investment.

Bibliographic Details

Main Authors:	Chen, Guangzhe, Geiger, Michael, Fu, Minghui
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank Group, Washington, DC 2015-06-19
Subjects:	TAX INCENTIVES, TARIFFS, FINANCIAL SERVICES, ENABLING ENVIRONMENTS, HOLDING, FOREIGN CAPITAL, MANUFACTURING FIRMS, EQUIPMENT, ECONOMIC GROWTH, CHECKS, ACCOUNTING, WAREHOUSE, FOREIGN MANUFACTURERS, INVESTMENT PROMOTION, STOCK, FOREIGN INVESTORS, GLOBAL MARKETS, INFORMATION TECHNOLOGY, INTEREST, RATE OF RETURN, FOREIGN OWNERSHIP, FOREIGN ENTERPRISES, DOMESTIC FIRMS, INVESTMENT POLICIES, PROPERTY RIGHTS, EXCHANGE, BALANCE OF PAYMENTS, MACROECONOMIC POLICY, DEVELOPING COUNTRIES, DOMESTIC MARKET, EXPORTERS, REVENUES, BINDING CONSTRAINT, MARKET SIZE, INDUSTRIAL DEVELOPMENT, ECONOMIC POLICY, INVESTMENT ACTIVITIES, MANUFACTURING SECTOR, EQUITY RETURNS, TAX, TREATIES, MARKET ACCESS, CENTRAL BANKS, FOREIGN INVESTMENTS, DEVELOPING COUNTRY, REINVESTMENT RATE, CONVERSION, FOREIGN MARKETS, MACROECONOMIC STABILITY, FOREIGN INVESTOR, LABOR MARKET, INVESTMENT BEHAVIOR, MARKET REFORMS, GOVERNMENT POLICY, HOST ECONOMY, HOST COUNTRIES, CONTRACTS, FDIS, TRADING, FOREIGN FIRMS, MONETARY FUND, GLOBALIZATION, MARKETS, PRIVATE INVESTMENT, RETURN, INTERNATIONAL ECONOMICS, MARKETS DATABASE, DIRECT INVESTMENT, INVESTMENT OPPORTUNITIES, PRIVATE CAPITAL, INVESTMENT PROMOTION AGENCIES, FINANCE, GLOBAL PRODUCTION NETWORKS, TAX POLICIES, TAXES, BROKERS, INVESTMENT DECISIONS, TECHNOLOGY, EMERGING MARKETS, POTENTIAL INVESTORS, EQUITY, INVESTORS, HUMAN CAPITAL, GOOD, TAX RATE, GLOBAL MARKET, DOMESTIC MARKETS, INVESTOR INTEREST, COUNTRY RISK, TURNOVER, FUTURE, FOREIGN DIRECT INVESTMENT, RETURNS, LOCAL MARKET, FOREIGN INVESTMENT, INVESTOR CONFIDENCE, INVESTMENT PROJECTS, INVESTMENT PATTERNS, SHARE OF INVESTMENT, CAPITAL FLOWS, PROPERTY, POTENTIAL INVESTMENT, PRIVATE SECTOR, LOCAL MARKETS, SHARES, REAL EXCHANGE RATE, MARKET, TRADE LIBERALIZATION, EQUITY INVESTMENT, CREDIT BUREAU, PRIVATE SECTOR INVESTMENT, INSURANCE, GOVERNMENT POLICIES, ECONOMIC DEVELOPMENT, INTERESTS, GOODS, INVESTOR, MARKET SHARE, GLOBAL TRADE, DOMESTIC ECONOMY, INTERNATIONAL MARKET, STOCKS, NATIONAL BANK, INVESTMENT, OVERSEAS INVESTMENT, RATES OF RETURN, HOST COUNTRY, HUMAN RESOURCES, SHARE, FDI, INVESTMENT CLIMATE, POVERTY, CAPITAL REQUIREMENT, POLITICAL STABILITY, MNE, CAPITAL INFLOWS, REINVESTMENT, PRIVATE INVESTMENTS, FOREIGN COMPANIES, TAX POLICY, PROFIT, INVESTMENTS, INTELLECTUAL PROPERTY, MANUFACTURING SECTORS, FINANCIAL RISK, TRANSITION ECONOMIES, EXCHANGE RATE, INSTRUMENT, CREDIT STRENGTH, PROFITS, CAPITAL INVESTMENT, TECHNOLOGIES, TRADE REGIME, INTERNATIONAL MARKETS, LEGAL RIGHTS, GUARANTEE, DEVELOPMENT BANK, POLITICAL RISK, INVESTING,
Online Access:	http://documents.worldbank.org/curated/en/2015/06/24720836/manufacturing-fdi-sub-saharan-africa-trends-determinants-impacts http://hdl.handle.net/10986/22352
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