The Determinants of U.S Private Manufacturing Investments in Africa

Oriye Agodo
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Oriye Agodo: Mandila Enterprises Ltd.

Journal of International Business Studies, 1978, vol. 9, issue 3, 95-106

Abstract: An inquiry into the determinants of U.S. private manufacturing investments in Africa shows that decisions to undertake manufacturing investments aboard are essentially determined by the expected rate of return on investment, the size of the domestic market, the presence of needed raw materials, the sufficiently developed infrastructure, a political stability and a favorable investment climate, and good prospects for the growth of private enterprise in the host country. On the other hand, the rate growth of the domestic market, relatively low overseas wages, and tax concession and tariff protection offered by the host governments have nonsignificant influence on the foreign investment decision.© 1978 JIBS. Journal of International Business Studies (1978) 9, 95–106

Date: 1978
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