Inclusive Industrialization: The Interplay Between Investment Incentives and SME Promotion Policies in Sub-Saharan Africa

M.A. van der Ven Colette ()
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M.A. van der Ven Colette: Sidley Austin LLPGeneva, Switzerland

The Law and Development Review, 2018, vol. 11, issue 2, 557-587

Abstract: Most Sub-Saharan African countries have adopted policies to attract foreign direct investment (FDI) and policies to stimulate the growth of small and medium enterprises (SMEs). While a significant body of literature exists analyzing how these objectives can be mutually reinforcing, the negative interplay between these policies remains relatively unexplored. This paper examines whether, and in what circumstances, investment incentives could undermine SME competitiveness and, conversely, whether policies aiming to promote SMEs through encouraging FDI-SME linkages could impede FDI. This paper demonstrates that, absent a comprehensive approach to policy making, tensions invariably arise between investment incentives and SME promotion policies.

Keywords: SDGs; inclusive and sustainable industrialization; small and medium enterprises; foreign direct investment; investment incentives (search for similar items in EconPapers)
Date: 2018
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DOI: 10.1515/ldr-2018-0029

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