Foreign ownership and performance in sub-Saharan African manufacturing and services

Neil Foster-McGregor, Anders Isaksson, Florian Kaulich

Publication: Working/Discussion PaperWorking Paper/Preprint


This paper tests for differences in performance between foreign- and domestically-owned firms in a sample of manufacturing and services firms from 19 sub-Saharan African countries. Results indicate that foreign-owned firms perform significantly better than domestically-owned ones in sub-Saharan Africa across several performance measures, with the foreign-ownership premia being higher for services firms. The results further indicate that firms owned by a TNC perform better than those owned by individual foreign entrepreneurs, though there is little evidence of differences in performance between joint ventures and wholly owned foreign enterprises.
Original languageEnglish
Publication statusPublished - 2013

Publication series

SeriesBIT Working Paper

Austrian Classification of Fields of Science and Technology (ÖFOS)

  • 502025 Econometrics
  • 502027 Political economy
  • 502046 Economic policy
  • 502003 Foreign trade

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