This paper adopts multilevel analysis to study the agglomeration-performance nexus for domestic firms in sub-Saharan Africa. We show that contextual factors can explain up to 30 % of the variance in firms’ productivity, more than half of which depends on the geographic location. Our results show also that African firms’ productivity is positively correlated to the size of the agglomeration when they locate in larger cities specialized in different sectors, while the relation turns negative when they face direct competition from firms in the same industry. These effects are similar in the services and the manufacturing industries, even if in the latter positive spillovers are found to be conditional to the presence of backward and forward linkages with nearby firms. Finally, we are able to show that these effects are also confirmed when domestic firms locate close to foreign multinationals, especially those coming from the South.

Spillovers from agglomerations and inward FDI: a multilevel analysis on sub-Saharan African firms

SANFILIPPO, MARCO;
2016-01-01

Abstract

This paper adopts multilevel analysis to study the agglomeration-performance nexus for domestic firms in sub-Saharan Africa. We show that contextual factors can explain up to 30 % of the variance in firms’ productivity, more than half of which depends on the geographic location. Our results show also that African firms’ productivity is positively correlated to the size of the agglomeration when they locate in larger cities specialized in different sectors, while the relation turns negative when they face direct competition from firms in the same industry. These effects are similar in the services and the manufacturing industries, even if in the latter positive spillovers are found to be conditional to the presence of backward and forward linkages with nearby firms. Finally, we are able to show that these effects are also confirmed when domestic firms locate close to foreign multinationals, especially those coming from the South.
File in questo prodotto:
File Dimensione Formato  
author's copy.pdf

non disponibili

Tipologia: Documento in Post-print
Licenza: NON PUBBLICO - Accesso privato/ristretto
Dimensione 1.17 MB
Formato Adobe PDF
1.17 MB Adobe PDF   Visualizza/Apri   Richiedi una copia

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11586/172347
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 7
  • ???jsp.display-item.citation.isi??? 7
social impact