Title
Spillovers from agglomerations and inward FDI : a multilevel analysis on sub-Saharan African firms Spillovers from agglomerations and inward FDI : a multilevel analysis on sub-Saharan African firms
Author
Faculty/Department
Institute of Development Policy and Management
Publication type
article
Publication
Tübingen ,
Subject
Politics
Economics
Source (journal)
Weltwirtschaftliches Archiv / Christian-Albrechts Universität Kiel. Institut für Weltwirtschaft. - Tübingen
Volume/pages
152(2016) :1 , p. 147-176
ISSN
1610-2878
ISI
000369005800008
Carrier
E
Target language
English (eng)
Full text (Publishers DOI)
Affiliation
University of Antwerp
Abstract
This paper adopts multilevel analysis to study the agglomeration-performance nexus for domestic firms in sub-Saharan Africa. We show that contextual factors can explain up to 30 % of the variance in firms productivity, more than half of which depends on the geographic location. Our results show also that African firms productivity is positively correlated to the size of the agglomeration when they locate in larger cities specialized in different sectors, while the relation turns negative when they face direct competition from firms in the same industry. These effects are similar in the services and the manufacturing industries, even if in the latter positive spillovers are found to be conditional to the presence of backward and forward linkages with nearby firms. Finally, we are able to show that these effects are also confirmed when domestic firms locate close to foreign multinationals, especially those coming from the South.
E-info
https://repository.uantwerpen.be/docman/iruaauth/f08eaa/128793.pdf
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