Thunderbird International Business Review · 2012 · 22 citations · 36 references
BusinessEconomicsInternational BusinessCompetitive AdvantageForeign Direct InvestmentInternational EconomicsCapability Gap AnalysisFdi DeterminantsInternational CompetitivenessInternational ExpansionPanel Data AnalysisPanel Data MethodsPanel Data RegressionPanel Regression ModelsTechnology DifferencesTechnology-seeking Foreign Direct Investment
Abstract This article investigates the impact of foreign direct investment (FDI) on the technology gap between countries in sub‐Saharan Africa (SSA) and the Organisation for Economic Co‐operation and Development (OECD), against the backdrop of relatively weak industrial performance of SSA. OECD is used in order to measure how SSA's competitiveness compares with the more advanced economies. The article further examines how the technology gap, in turn, exacerbates international business capabilities of SSA and draws out some policy implications. Using a panel data regression model, the article finds that FDI inflows have had relatively little impact on SSA's industrial capacity development and global competitiveness, and, indeed, widened the gap between SSA and major developed economies. © 2012 Wiley Periodicals, Inc.
36