Does Multinationals Entry Mode Affect Local Firms’ Export Behaviours? Evidence from Cameroon

Amza Mounchili Youwa and Henri Ngoa Tabi
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Amza Mounchili Youwa: Ph.D Student, Faculty of Economics and Management, University of Yaounde 2, Cameroon
Henri Ngoa Tabi: Professor, Faculty of Economics and Management, University of Yaounde 2, Cameroon

International Journal of Research and Innovation in Social Science, 2022, vol. 6, issue 8, 413-423

Abstract: This study verifies whether foreign presence namely Greenfield and Joint venture reduce or push up local firms’ exports behaviours using the Heckman sample selection model pooled over a survey firm-level panel data in Cameroon during 2006-2016 provided by the World Bank. we found that (i) Joint venture activities have more significant positive impact on Cameroonian export behaviours than greenfield affiliate; and (ii) such externalities are heterogeneous and depend on Cameroonian firm-level characteristics. Firm size, and firm age are found to have significantly positive impacts on the joint venture export externalities magnitude, while access land and financing and transport-related obstacles exert significant negative impacts on their side. Only the transport obstacle has a statistically significant negative effect on the greenfield export spillovers magnitude. Our findings present significant implications for policy makers seeking to help domestic firms benefit more from foreign-linked export spillovers such as promoting export-oriented joint venture and reducing obstacles related to accessing land and financing formalities and less complex appropriate customs measures

Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:bcp:journl:v:6:y:2022:i:8:p:413-423

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