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Local sourcing in developing countries

Tijdschriftbijdrage - Tijdschriftartikel

Ondertitel:the role of foreign direct investments and global value chains
The local sourcing of intermediate products is one the main channels for foreign direct investment (FM) spillovers. This paper investigates whether and how participation and positioning in the global value chains (GVCs) of host countries is associated to local sourcing by foreign investors. Matching two firm level data sets on 19 Sub-Saharan African countries and Vietnam to country-sector level measures of GVC involvement, we find that more intense GVC participation and upstream specialization are associated to a higher share of inputs sourced locally by foreign investors. These effects are larger in countries with stronger rule of law and better education. (C) 2018 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license.
Tijdschrift: World development
ISSN: 0305-750X
Volume: 113
Pagina's: 73 - 88
Jaar van publicatie:2019
Trefwoorden:A1 Journal article
BOF-keylabel:ja
BOF-publication weight:2
CSS-citation score:3
Auteurs:International
Authors from:Higher Education
Toegankelijkheid:Open