Multinational Firms In Africa

Monographic compilation of conference papers on multinational enterprises in Africa - considers political aspects and social implications, the international division of labour and underdevelopment, etc., includes case studies of foreign investment in several countries, and suggests strategies for non-exploitative technology transfer. References and statistical tables. Conference held in Dakar 1974 September 25 to October 5.

How can Africa, the world’s most lagging region, benefit from globalisation and achieve sustained economic growth? Africa needs greater investment by Multinational Enterprises (MNEs) to improve competitiveness and generate more growth through positive spill-over effects. Despite the fact that Africa’s returns on investment averaged 29% since 1990, Africa has gained merely 1% of global Foreign Direct Investment (FDI) flows. The challenge for African countries is how to be a more desirable destination for FDI. The study integrates three currents of economic research, namely from the literature on (endogenous) economic growth, convergence and regional integration, the explanations for Africa’s poor growth and the growing understanding of the role of MNEs in a global economy. The empirical side of the book is based on an econometric study of the determinants of FDI in Africa as well as a detailed firm-level survey conducted in 2000.

The research papers and cases in The Changing Dynamics of International Business in Africa provide multi-disciplinary insights on the opportunities and challenges of doing business in Africa, as well as on the changing competitive dynamics in the region, as Western, BRIC and African multinationals intensify their fight for market dominance.

This volume identifies and analyses the crucial issues in the impact of multinational enterprises (MNEs) on less developed countries (LDCs). Although the authors take a variety of wide stances on the important questions a uniformity of approach emerges. The perspective is essentially that of economic analysis but it is enlivened by unorthodox concepts derived from related social science disciplines. The chapters cover the process of development, paying attention to entrepreneurship, cultural factors and management styles and examine the impact on welfare and income distribution in the host country.