Foreign Direct Investment in Africa : Policies Also Matter
Africa has not succeeded in attracting much foreign direct investment in the past few decades. When countries did attract multinational companies, it was principally because of their (abundant) natural resources and the size of their domestic marke...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2000/11/717449/foreign-direct-investment-africa-policies-also-matter http://hdl.handle.net/10986/19748 |
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okr-10986-197482021-04-23T14:03:44Z Foreign Direct Investment in Africa : Policies Also Matter Morisset, Jacques ADMINISTRATIVE BARRIERS BANKING SECTOR BENCHMARK BUSINESS CLIMATE BUSINESS COMMUNITY BUSINESS ENVIRONMENT CAPITAL EXPENDITURES COMPETITIVENESS CONSUMER PRICE INDEX CORRUPTION CROSS-COUNTRY ANALYSES DIRECT INVESTMENT ECONOMETRIC ANALYSIS ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC PROBLEMS ECONOMIES OF SCALE ELASTICITIES ELASTICITY EMPIRICAL STUDIES EXPENDITURES EXPORT PROCESSING ZONES EXPORTS FDI FOREIGN COMPANIES FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FOREIGN INVESTORS FREE TRADE GDP GROSS DOMESTIC PRODUCT GROWTH PERFORMANCE GROWTH RATE HOST COUNTRY HOST ECONOMY HUMAN CAPITAL INCOME INDUSTRIAL COUNTRIES INFLATION INSURANCE INTERNATIONAL ECONOMICS INTERNATIONAL INVESTMENT INTERNATIONAL INVESTORS INVESTMENT CLIMATE INVESTMENT GUARANTEE AGENCY LEGISLATION MACROECONOMIC INDICATORS MACROECONOMIC PERFORMANCE MACROECONOMIC STABILITY MANUFACTURING SECTORS MARKET SIZE MULTIPLIER EFFECT MULTIPLIER EFFECTS NATURAL RESOURCES OIL OIL RESERVES PARLIAMENT POLICY INTERVENTION POLITICAL STABILITY PORTFOLIO POSITIVE EXTERNALITIES POTENTIAL INVESTORS REGRESSION ANALYSIS STATISTICAL DATA TARIFF BARRIERS TELEPHONE LINES TRADE BARRIERS TRADE LIBERALIZATION TRANSPARENCY Africa has not succeeded in attracting much foreign direct investment in the past few decades. When countries did attract multinational companies, it was principally because of their (abundant) natural resources and the size of their domestic market. Angola, Cote d'Ivoire, Nigeria, and South Africa have traditionally been the main recipients of foreign direct investment in Sub-Saharan Africa. But the author shows that a few Sub-Saharan countries have generated interest among international investors by improving their business environment. In the 1990s, Mali, Mozambique, Namibia, and Senegal attracted substantial foreign direct investment--more so than countries with bigger domestic markets (Cameroon, Republic of Congo, and Kenya) and greater natural resources (Republic of Congo and Zimbabwe). Mali and Mozambique, which improved their business climate spectacularly in the 1990s, did so with a few strategic actions: liberalizing trade, launching an attractive privatization program, modernizing mining and investment codes, adopting international agreements on foreign direct investment, developing a few priority projects that had multiplier effects on other investment projects, and mounting an image-building effort in which political figures such as the nation's president participated. These actions are similar to those associated with the success of other small countries with limited natural resources, such as Ireland and Singapore about 20 years ago. 2014-08-27T16:43:57Z 2014-08-27T16:43:57Z 2000-11 http://documents.worldbank.org/curated/en/2000/11/717449/foreign-direct-investment-africa-policies-also-matter http://hdl.handle.net/10986/19748 English en_US Policy Research Working Paper;No. 2481 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa 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 |
ADMINISTRATIVE BARRIERS BANKING SECTOR BENCHMARK BUSINESS CLIMATE BUSINESS COMMUNITY BUSINESS ENVIRONMENT CAPITAL EXPENDITURES COMPETITIVENESS CONSUMER PRICE INDEX CORRUPTION CROSS-COUNTRY ANALYSES DIRECT INVESTMENT ECONOMETRIC ANALYSIS ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC PROBLEMS ECONOMIES OF SCALE ELASTICITIES ELASTICITY EMPIRICAL STUDIES EXPENDITURES EXPORT PROCESSING ZONES EXPORTS FDI FOREIGN COMPANIES FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FOREIGN INVESTORS FREE TRADE GDP GROSS DOMESTIC PRODUCT GROWTH PERFORMANCE GROWTH RATE HOST COUNTRY HOST ECONOMY HUMAN CAPITAL INCOME INDUSTRIAL COUNTRIES INFLATION INSURANCE INTERNATIONAL ECONOMICS INTERNATIONAL INVESTMENT INTERNATIONAL INVESTORS INVESTMENT CLIMATE INVESTMENT GUARANTEE AGENCY LEGISLATION MACROECONOMIC INDICATORS MACROECONOMIC PERFORMANCE MACROECONOMIC STABILITY MANUFACTURING SECTORS MARKET SIZE MULTIPLIER EFFECT MULTIPLIER EFFECTS NATURAL RESOURCES OIL OIL RESERVES PARLIAMENT POLICY INTERVENTION POLITICAL STABILITY PORTFOLIO POSITIVE EXTERNALITIES POTENTIAL INVESTORS REGRESSION ANALYSIS STATISTICAL DATA TARIFF BARRIERS TELEPHONE LINES TRADE BARRIERS TRADE LIBERALIZATION TRANSPARENCY |
| spellingShingle |
ADMINISTRATIVE BARRIERS BANKING SECTOR BENCHMARK BUSINESS CLIMATE BUSINESS COMMUNITY BUSINESS ENVIRONMENT CAPITAL EXPENDITURES COMPETITIVENESS CONSUMER PRICE INDEX CORRUPTION CROSS-COUNTRY ANALYSES DIRECT INVESTMENT ECONOMETRIC ANALYSIS ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC PROBLEMS ECONOMIES OF SCALE ELASTICITIES ELASTICITY EMPIRICAL STUDIES EXPENDITURES EXPORT PROCESSING ZONES EXPORTS FDI FOREIGN COMPANIES FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FOREIGN INVESTORS FREE TRADE GDP GROSS DOMESTIC PRODUCT GROWTH PERFORMANCE GROWTH RATE HOST COUNTRY HOST ECONOMY HUMAN CAPITAL INCOME INDUSTRIAL COUNTRIES INFLATION INSURANCE INTERNATIONAL ECONOMICS INTERNATIONAL INVESTMENT INTERNATIONAL INVESTORS INVESTMENT CLIMATE INVESTMENT GUARANTEE AGENCY LEGISLATION MACROECONOMIC INDICATORS MACROECONOMIC PERFORMANCE MACROECONOMIC STABILITY MANUFACTURING SECTORS MARKET SIZE MULTIPLIER EFFECT MULTIPLIER EFFECTS NATURAL RESOURCES OIL OIL RESERVES PARLIAMENT POLICY INTERVENTION POLITICAL STABILITY PORTFOLIO POSITIVE EXTERNALITIES POTENTIAL INVESTORS REGRESSION ANALYSIS STATISTICAL DATA TARIFF BARRIERS TELEPHONE LINES TRADE BARRIERS TRADE LIBERALIZATION TRANSPARENCY Morisset, Jacques Foreign Direct Investment in Africa : Policies Also Matter |
| geographic_facet |
Africa Africa |
| relation |
Policy Research Working Paper;No. 2481 |
| description |
Africa has not succeeded in attracting
much foreign direct investment in the past few decades. When
countries did attract multinational companies, it was
principally because of their (abundant) natural resources
and the size of their domestic market. Angola, Cote
d'Ivoire, Nigeria, and South Africa have traditionally
been the main recipients of foreign direct investment in
Sub-Saharan Africa. But the author shows that a few
Sub-Saharan countries have generated interest among
international investors by improving their business
environment. In the 1990s, Mali, Mozambique, Namibia, and
Senegal attracted substantial foreign direct
investment--more so than countries with bigger domestic
markets (Cameroon, Republic of Congo, and Kenya) and greater
natural resources (Republic of Congo and Zimbabwe). Mali and
Mozambique, which improved their business climate
spectacularly in the 1990s, did so with a few strategic
actions: liberalizing trade, launching an attractive
privatization program, modernizing mining and investment
codes, adopting international agreements on foreign direct
investment, developing a few priority projects that had
multiplier effects on other investment projects, and
mounting an image-building effort in which political figures
such as the nation's president participated. These
actions are similar to those associated with the success of
other small countries with limited natural resources, such
as Ireland and Singapore about 20 years ago. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Morisset, Jacques |
| author_facet |
Morisset, Jacques |
| author_sort |
Morisset, Jacques |
| title |
Foreign Direct Investment in Africa : Policies Also Matter |
| title_short |
Foreign Direct Investment in Africa : Policies Also Matter |
| title_full |
Foreign Direct Investment in Africa : Policies Also Matter |
| title_fullStr |
Foreign Direct Investment in Africa : Policies Also Matter |
| title_full_unstemmed |
Foreign Direct Investment in Africa : Policies Also Matter |
| title_sort |
foreign direct investment in africa : policies also matter |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2000/11/717449/foreign-direct-investment-africa-policies-also-matter http://hdl.handle.net/10986/19748 |
| _version_ |
1764440533212594176 |