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 an...

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Main Authors:	Chen, Guangzhe, Geiger, Michael, Fu, Minghui
Format:	Working Paper
Language:	English en_US
Published:	World Bank Group, Washington, DC 2015
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

id	okr-10986-22352
recordtype	oai_dc
spelling	okr-10986-223522021-04-23T14:04:08Z Manufacturing FDI in Sub-Saharan Africa : Trends, Determinants, and Impacts Chen, Guangzhe Geiger, Michael Fu, Minghui 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 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. 2015-07-29T21:38:01Z 2015-07-29T21:38:01Z 2015-06-19 Working Paper http://documents.worldbank.org/curated/en/2015/06/24720836/manufacturing-fdi-sub-saharan-africa-trends-determinants-impacts http://hdl.handle.net/10986/22352 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank Group, Washington, DC Publications & Research Publications & Research :: Working Paper Africa Sub-Saharan Africa
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	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
spellingShingle	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 Chen, Guangzhe Geiger, Michael Fu, Minghui Manufacturing FDI in Sub-Saharan Africa : Trends, Determinants, and Impacts
geographic_facet	Africa Sub-Saharan Africa
description	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.
format	Working Paper
author	Chen, Guangzhe Geiger, Michael Fu, Minghui
author_facet	Chen, Guangzhe Geiger, Michael Fu, Minghui
author_sort	Chen, Guangzhe
title	Manufacturing FDI in Sub-Saharan Africa : Trends, Determinants, and Impacts
title_short	Manufacturing FDI in Sub-Saharan Africa : Trends, Determinants, and Impacts
title_full	Manufacturing FDI in Sub-Saharan Africa : Trends, Determinants, and Impacts
title_fullStr	Manufacturing FDI in Sub-Saharan Africa : Trends, Determinants, and Impacts
title_full_unstemmed	Manufacturing FDI in Sub-Saharan Africa : Trends, Determinants, and Impacts
title_sort	manufacturing fdi in sub-saharan africa : trends, determinants, and impacts
publisher	World Bank Group, Washington, DC
publishDate	2015
url	http://documents.worldbank.org/curated/en/2015/06/24720836/manufacturing-fdi-sub-saharan-africa-trends-determinants-impacts http://hdl.handle.net/10986/22352
_version_	1764450835176095744

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

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