Linkages and spillover effects of South African foreign direct investment in Botswana and Kenya

Felix Nandonde, Richard Adu-Gyamfi, Tinaye Mmusi, Herbert Wamalwa, Simplice Asongu, Johannes Opperman and Jeremiah Makindara

MPRA Paper from University Library of Munich, Germany

Abstract: In recent decades, the impact of South African foreign direct investment in Africa has been captured by research and policy. This paper investigates linkages and spillover effects of South African foreign direct investment in Botswana and Kenya. The study uses primary data to investigate qualitative implications. The findings reveal that South African firms operate in sectors including retail, food-processing, and information and communication technology. Linkages forged in these sectors include supply, employee, joint venture, service, and institutional nexuses. Supply and service linkages create observable spillovers which point to the fact that younger local firms tend to benefit from South African firms in terms of technology transfer and training opportunities. Host country policymakers are therefore encouraged to provide favourable incentives for foreign direct investment to promote entrepreneurship. Other policy implications are also discussed.

Keywords: Foreign direct investment; linkages; spillover effects; South Africa; Botswana; Kenya (search for similar items in EconPapers)
JEL-codes: E23 F21 F30 L96 L98 O55 (search for similar items in EconPapers)
Date: 2019-03
New Economics Papers: this item is included in nep-fdg, nep-ict and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Linkages and spillover effects of South African foreign direct investment in Botswana and Kenya (2019)
Working Paper: Linkages and spillover effects of South African foreign direct investment in Botswana and Kenya (2019)
Working Paper: Linkages and spillover effects of South African foreign direct investment in Botswana and Kenya (2019)
Working Paper: Linkages and spillover effects of South African foreign direct investment in Botswana and Kenya (2019)
Working Paper: Linkages and spillover effects of South African foreign direct investment in Botswana and Kenya (2019)
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