IDEAS home Printed from https://ideas.repec.org/a/wbk/prmecp/ep135.html
   My bibliography  Save this article

Does FDI Work for Africa? Assessing Local Spillovers in a World of Global Value Chains

Author

Listed:
  • Farole, Thomas

    (World Bank)

  • Winkler, Deborah

    (World Bank)

Abstract

The extent to which developing countries benefit from foreign direct investment (FDI) depends on whether they are able to realize the productivity-enhancing benefits of knowledge and technology spillovers from foreign investors. To date, the experiences in Sub-Saharan Africa have been largely disappointing. This is perhaps not surprising, bearing in mind the complex interplay of factors needed for spillovers to emerge. On top of the challenges of supply side capacity and the host country's policy environment, the willingness and capacity of foreign investors to support spillovers vary hugely across sectors and firms, and are shaped by the dynamics of the global value chains (GVCs) in which they operate. This note summarizes the main findings from the new World Bank book Making Foreign Direct Investment Work for SubSaharan Africa and discusses the implications for policy makers hoping to harness the potential of FDI for better development outcomes.

Suggested Citation

  • Farole, Thomas & Winkler, Deborah, 2014. "Does FDI Work for Africa? Assessing Local Spillovers in a World of Global Value Chains," World Bank - Economic Premise, The World Bank, issue 135, pages 1-6, February.
    • Handle: RePEc:wbk:prmecp:ep135
    as

    Download full text from publisher

    File URL: http://siteresources.worldbank.org/EXTPREMNET/Resources/EP135.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Thomas Farole & Deborah Winkler, 2014. "Making Foreign Direct Investment Work for Sub-Saharan Africa : Local Spillovers and Competitiveness in Global Value Chains," World Bank Publications - Books, The World Bank Group, number 16390.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. World Bank Group, 2015. "Fourth Ethiopia Economic Update," World Bank Publications - Reports 22317, The World Bank Group.
    2. Nina Vujanovic & Bruno Casella & Richard Bolwijn, . "Forecasting global FDI: a panel data approach," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    3. World Bank, 2014. "Malaysia Economic Monitor, June 2014 : Boosting Trade Competitiveness," World Bank Publications - Reports 19303, The World Bank Group.
    4. repec:ocp:rpaper:pp-16/03 is not listed on IDEAS
    5. Rodríguez-Pose, Andrés & Belso-Martinez, Jose Antonio & Díez-Vial, Isabel, 2021. "Playing the innovation subsidy game: experience, clusters, consultancy, and networking in regional innovation support," LSE Research Online Documents on Economics 111603, London School of Economics and Political Science, LSE Library.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dutta, Sourish, 2017. "Research Methods of Assessing Global Value Chains," MPRA Paper 106201, University Library of Munich, Germany.
    2. Fabrizio Fusillo & Silvia Nenci & Carlo Pietrobelli & Francesco Quatraro, 2024. "Co-evolutionary patterns of GVC-trade and knowledge flows in the mining industry: evidence from Latin America," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 33(4), pages 1011-1036.
    3. Pierluigi Montalbano & Silvia Nenci & Carlo Pietrobelli, 2018. "Opening and linking up: firms, GVCs, and productivity in Latin America," Small Business Economics, Springer, vol. 50(4), pages 917-935, April.
    4. Renu Bansal & Dibyendu Maiti, 2024. "Capital Inflow, Strategic Subcontracting, and Formal Employment," Working papers 348, Centre for Development Economics, Delhi School of Economics.
    5. Dutta, Sourish, 2017. "Mechanics of Global Value Chains: India's Perspective," MPRA Paper 108482, University Library of Munich, Germany.
    6. Daria Taglioni & Deborah Winkler, 2016. "Making Global Value Chains Work for Development," World Bank Publications - Books, The World Bank Group, number 24426.
    7. Sourish Dutta, 2024. "Review of Strategies and Policies for Enhanced Participation in Global Value Chains," Post-Print hal-04661503, HAL.
    8. Dutta, Sourish, 2021. "Mechanics of Global Value Chains: India's Perspective," OSF Preprints ugkr6_v1, Center for Open Science.
    9. Jordaan,Jacob Arie & Douw,Willem & Qiang,Zhenwei, 2020. "Multinational Corporation Affiliates, Backward Linkages, and Productivity Spillovers in Developing and Emerging Economies : Evidence and Policy Making," Policy Research Working Paper Series 9364, The World Bank.
    10. Rob Kuijpers & Johan Swinnen, 2016. "Value Chains and Technology Transfer to Agriculture in Developing and Emerging Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1403-1418.
    11. Bernard Hoekman & Marco Sanfilippo, 2023. "Trade and value chain participation: Domestic firms and FDI spillovers in Africa," The World Economy, Wiley Blackwell, vol. 46(11), pages 3367-3391, November.
    12. Jakob Engel & Deeksha Kokas & Gladys Lopez-Acevedo & Maryla Maliszewska, 2021. "The Distributional Impacts of Trade," World Bank Publications - Books, The World Bank Group, number 35552.
    13. Victor Stolzenburg & Daria Taglioni & Deborah Winkler, 2019. "Economic upgrading through global value chain participation: which policies increase the value-added gains?," Chapters, in: Stefano Ponte & Gary Gereffi & Gale Raj-Reichert (ed.), Handbook on Global Value Chains, chapter 30, pages 483-505, Edward Elgar Publishing.
    14. Yassin Sabha & Yan Liu & Wim Douw, 2020. "Investment Linkages and Incentives," World Bank Publications - Reports 33760, The World Bank Group.
    15. Montalbano, Pierluigi & Nenci, Silvia & Pietrobelli, Carlo, 2017. "Opening and linking up: Firms, global value chains and productivity in Latin America," MERIT Working Papers 2017-030, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    16. Ricardo Monge-González & Luis Rivera & Nanno Mulder, . "Cultural spillovers from multinational to domestic firms: evidence on female employment in Costa Rica," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    17. Yeboah Asuamah, Samuel, 2023. "Empowering Communities: A Systematic Review of FDI Initiatives for Skill Development and Local Capacity Building," MPRA Paper 118410, University Library of Munich, Germany, revised 20 Aug 2023.
    18. Laget,Edith & Roch,Nadia & Varela,Gonzalo J., 2021. "Deep Trade Agreement and Foreign Direct Investments," Policy Research Working Paper Series 9829, The World Bank.
    19. Amendolagine, Vito & Presbitero, Andrea F. & Rabellotti, Roberta & Sanfilippo, Marco, 2019. "Local sourcing in developing countries: The role of foreign direct investments and global value chains," World Development, Elsevier, vol. 113(C), pages 73-88.
    20. Yue Lu & Lijing Deng & Ka Zeng, 2022. "Foreign direct investment, innovation, and domestic value‐added in exports: Firm‐level evidence from China," Review of International Economics, Wiley Blackwell, vol. 30(4), pages 1199-1228, September.

    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • F6 - International Economics - - Economic Impacts of Globalization

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:prmecp:ep135. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael Jelenic (email available below). General contact details of provider: https://edirc.repec.org/data/prewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.