FDI in Sub-Saharan Africa

Ludger Odenthal

No 173, OECD Development Centre Working Papers from OECD Publishing

Abstract: The experience of newly-industrialised countries suggests the need for an analysis in which the pattern of comparative advantage is not set in stone but is potentially flexible, and in which less developed countries can develop and converge in both income and economic structure to industrial economies. The pattern of trade and development in the world economy clearly shows the key role played by history: cumulative causation has created concentrations of industrial activity in particular locations and left other areas more dependent on primary activities. By changing the attractiveness of countries as a base for manufacturing production, trading arrangements can potentially trigger or postpone industrial development. At the same time, cut-throat bidding war to attract FDI may have unintended negative consequences on recipient countries if they lead governments to offer excessive fiscal and financial subsidies and to disregard the protection of the investment and of workers’ rights ... Il ressort de l’expérience des nouveaux pays industrialisés que la structure de l’avantage comparatif ne doit pas être rigide, mais au contraire potentiellement flexible, et que les pays moins développés peuvent progresser et converger vers les économies industrielles, tant en termes de revenus que de structure économique. Les relations entre échanges et développement dans l’économie mondiale mettent en évidence le rôle fondamental des facteurs historiques : des faisceaux de causes ont provoqué la concentration des activités industrielles en certains endroits, alors que d’autres restaient davantage dépendants des activités primaires. En modifiant la capacité d’attraction des pays au regard de la production industrielle, les accords commerciaux ont la possibilité de favoriser ou de ralentir le développement industriel. Dans le même temps, une concurrence acharnée pour attirer les investissements directs étrangers peut avoir des effets pervers inattendus dans les pays receveurs si ...

Date: 2001-03-01
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Persistent link: https://EconPapers.repec.org/RePEc:oec:devaaa:173-en

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