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Private Sector Investing in Low-Income Countries Research Paper


Introduction

Low income and low-middle income countries offer a perfect opportunity for small and medium enterprises all over the world to expand their operations beyond the borders of their parent country. In these countries, industrialization is relatively low, and the local firms are known to exploit their clients because the level of competition is relatively low in some of the sectors. Finding a way to get into such industries may offer companies from donor countries a good opportunity to expand their market share. However, a report published by Ban Ki-moon shows that the private sector from the donor countries is reluctant to invest in low-income and low-middle income countries.1 The private sector in Europe and North America, for instance, is not enthusiastic about investing in some of the developing economies in Africa.

One of the main issues cited as the primary cause of fear is insecurity. Some of these developing economies have failed political systems, and security is a major concern. Countries like Congo and Nigeria may be very attractive to foreign investors because of their populations. Still, the lawlessness witnessed in some of their major towns is a prime cause of concern. Issues such as corruption and lengthy processes of registering a new company are also cited as major causes of foreign investors’ concern. Despite these challenges, Kabir and Mamunur say that foreign firms have registered impressive performances in these countries.2 The private sector in the donor countries should also come up with ways of overcoming these challenges to tap into these countries’ opportunities. In this paper, the researcher seeks to determine the best practices in encouraging the private sector from donor countries to invest in low-income countries. The research looks at the challenges of investing in these countries and how they can be mitigated to promote foreign investment.

Understanding the Host Country

When planning to invest in low and middle-income countries, Gourinchas and Jeanne say that the most important step is understanding the target country.3 Nigeria is one perfect example of a low-income country that donor companies may consider investing in because of its massive population of close to 170 million people. However, Ban Ki-moon warns that one should not just focus on the population alone.4 There are many factors to analyze before selecting the host country besides the population. One such factor is the purchasing power of the population. Nigeria is one of the world’s most populated countries. It also has a few very rich people who make up less than one percent of the entire population. This means that if a firm provides products that can only be purchased by the rich and the upper-middle-income earners, then Nigeria may not be the best choice. The massive population, as Diaconu says, may be deceptive.5 An investor must scrutinize the host country and determine if the product can find the desired market.

The systems in most of these host countries are not as efficient as they are in developed countries. Laws apply to different people differently based on their social status and relationship with the ruling political class. As such, González says that a firm must be ready to operate under a system where justice is served differently based on whether one can buy a product.6 These are some of the issues that sometimes discourage foreign firms from investing in these countries. When one understands the host country, it is easy to come up with ways of overcoming the challenges and tapping into the huge opportunities that exist. For a firm targeting a Nigerian market with a product that targets the low income and low-middle income earners, the reward of investing in this country can be very great. The population is very large, and unlike in some developed nations, the majority of people in these lesser developed countries are the youth and the younger generation. This means that a firm is assured of continued growth in the market.

A study by Blonigen and Piger reports that America, Japan, and Europe once dominated the least developed economies.7 However, China is slowly edging them out as a country that is investing more in these countries. Middle-income countries, especially in the Middle East, have yet to develop strategies of tapping into the opportunities available in these other countries.

What Affects Investment Decisions

Investing in an overseas market is not a simple decision to make for private sector firms. Individuals own these firms, and they are always keen to protect the sustainability of their operations. Going global may pose a myriad of risks that may threaten the very existence of their firm. As such, they always take into consideration several factors before they make investment decisions. From a firm’s perspective, the following are the factors that affect investment decisions.

Knowledge about Foreign Markets

The knowledge that a private firm has about the host country determines whether a decision will be made to invest in it. According to Bandyopadhyay, Sandler, and Younas, limited knowledge about a foreign market is always a cause of concern.8 The uncertainty brought about by limited knowledge is an issue that many private firms would want to avoid. However, when a firm has enough knowledge about the target market, it may make a favorable decision about investing in it. What firms often want to avoid is entering a market without knowing what to expect from the social, economic, and political environment. Investing in a new market involves taking a risk. However, a firm must make a calculated risk to avoid massive losses that may bring down its operations. However, calculated risks can only be taken with full knowledge of the market. A firm must know the opportunities and threats that should be expected in the market. There must also be a full audit of the new market’s external environment. The audit ensures that the investment decision is based on facts.

The Legal Environment

According to Diyamett and Mutambla, before a firm can decide to invest in a foreign country, the legal environment is another factor that they often take into consideration.9 For a firm to operate successfully in the new market, there must be a legal environment that can protect it from local forces that may want to exploit it. The firm must be assured that its operations will be protected by a sound legal system. The legal system can only be sound and assuring if there is a stable political environment. The stability of the legal environment determines how effectively the laws can be enforced. For instance, it may not be easy for a firm to decide to invest either in Syria or Iraq because of these countries’ political instability. The countries have laws and regulations meant to protect firms, their customers, the suppliers, the government, and the public from unfair exploitation or threats. However, law enforcement is an issue because of the fallen government. The presence of terror groups in these countries, such as ISIS and rebel fighters, makes it impossible for the government to function normally. The government instruments meant to enforce the law are currently deployed to fight the rebels and terror groups.

Cultural Issues

Cultural issues are very important when a firm is making an investment decision, especially when it involves investing in a foreign country. According to Milner, socio-cultural issues define the purchasing pattern of a region.10 A good example is the apparel industry. Clothes popularly used in the United Kingdom, Germany, Australia, and the United States of America are very different from those used in the Middle East. A firm that targets the market for women’s clothes in any country within the Middle East must understand this market’s culture before making any investment decision. If the firm is uncertain about the culture, research may be needed before deciding because all the strategies must be based on socio-cultural forces. The investment decision also involves determining the purchasing capacity of the market.

Tax Concerns

When a firm is planning to enter a new market, it must take time to understand a foreign country’s tax system. The investment decision will only be made if it is confirmed that the firm will be making meaningful profits to justify its operations abroad. Some tax systems are meant to discourage foreign investors as a way of protecting the local economy, a practice that was common in China before it joined the World Trade Organization.11 There are instances where local firms are given tax holidays as a way of promoting their growth. A firm can only be successful if there is a leveled and fair playing ground for all the competitors, where no one is granted an unfair advantage over others. Before making an investment decision, the firm from the donor country must understand the taxation system in the host country and determine if it has the capacity to be successful under the existing forces. If the tax system is skewed against foreign investors, it may be necessary for such a firm to consider investing in other markets.

Effect of the Investment Decision

According to Saqib, Masnoon, and Rafique, the investment decision that a firm makes may be either beneficial or disastrous, depending on several factors.12 If the management took the time to scan the market and understood all the relevant forces, such a firm would likely achieve success. Alobari notes that competition in developing countries is not as stiff as it is in developed countries.13 As such, when a firm puts up a proper system, achieving success may not be a problem. However, for a firm that entered a foreign market without conducting thorough market research, the effect of such a decision may be devastating. For instance, a firm that makes a heavy investment to sell fashion clothes for women in Libya without understanding the dress code for these women based on their culture may have serious losses. A firm needs to ensure that before making an investment decision, it has a clear understanding of the market forces and how they can be managed to achieve the desired success. Planning is crucial in achieving success when a firm is intending to invest in low and middle-income economies.

Challenges of Investing in Low-Income Countries

According to Claessens and Horen, a firm needs to understand that when moving to a new country, there are several environmental forces unique to these countries that may pose operational problems.14 Some of these challenges can easily be dealt with if a firm has the financial strength and necessary human resources. However, others may need the firm to conform to the environment to operate. Donor country firms planning to invest in low and middle-income countries must be ready to deal with the market’s following challenges.

Poor Infrastructure

According to Lessmann, cities such as Dubai, London, New York, Berlin, Melbourne, and Toronto have state-of-the-art transport infrastructure that moves people and goods from one place to another very easily.15 The railway system, roads, and sea transport are very advanced in these cities, and it only takes a short time to get from one’s house to work and back because of the efficient transport system. The same cannot be said about the transport system in low-income countries. For instance, in Nairobi, the largest city in East Africa, it may take over two hours to get to their workplace from their home that is less than 10 kilometers away. This is because of the heavy and regular traffic jams that force cars to move at an average speed of fewer than 10 kilometers per hour, especially during rush hour and evening. The railway system is so unreliable because it only covers a small section of the city, and it is always overcrowded. This is a real challenge that a foreign firm must be ready to deal with in these low and middle-income economies. The infrastructure in most healthcare facilities and schools is not as efficient as it is in the developed economies. There are cases where one may be forced to travel out of these countries to seek medical attention elsewhere because of the inadequate facilities. This means that when planning to invest in such a country, a firm must develop a plan on how to deal with this challenge.

Security Concerns

According to Estrin and Uvalic, security is one of the greatest concerns that a foreign firm would want to be assured of before investing in a foreign country.16 It is impossible for any firm, whether foreign or local, to survive in a market that lacks security. A foreign firm may not want to operate in a country where its facilities can be vandalized at any time, or its employees attacked. Security is critical to the success of a firm. The problem is that some of these low and middle-income countries have security problems caused by political instability, corruption, inefficient security instruments, and a culture that promotes violence. In Syria and Iraq, political instability has made it impossible for local and foreign firms to operate because there is no security. The rebels, terror groups, and state instruments currently pose equal threats to businesses in the country. In Nigeria, Boko Haram is a serious threat, and it is not always clear when they may attack, especially in the northern part of the country, where it is very powerful. In Kenya, security instruments are always compromised, making it difficult for a firm to be assured of its security. The same problem is common in Jamaica and Haiti.17 In Congo, Uganda, Burundi, and parts of Rwanda, the rebel fighters still pose a serious threat to the local and foreign firms. These security issues may be a hindrance to the normal operations of a firm in the foreign market.

Corruption

Corruption remains one of the biggest challenges for foreign investors planning to expand their operations to low and middle-income economies. According to Claessens and Horen, in most European and North American countries, there are strict laws against corruption, and government agencies are keen on implementing them.18 The same is the case in Japan, South Korea, and Australia. Recently, the South Korean leader was forced to step down from her position as prime minister because of corruption allegations. The country’s most powerful person was punished because it is believed she was involved in corrupt activities. It is a clear sign of how much corruption is detested in these countries. However, most low and middle-income economies have come to embrace corruption as a part of life.

Claessens and Horen say sarcastically that corruption has become a sector of its own in Kenya and Nigeria, employing several people within these countries.19 In Nigeria, before a firm can be registered, numerous steps have to be followed. In each step, there are payments. The process is always painfully slow, but it can be completed in record time with some bribes. Normally, it may take four times longer for a firm to be registered in Nigeria as it is in Australia. However, when a bribe is paid, a firm can start operating in Nigeria, even without the documents. If the documents are critical for its operation, then a bribe can make sure they are processed faster than they would have been in any developed country. Once a firm starts operation, it must be ready to pay a bribe to protect cartels and the political class, which may want to exploit it. Corruption is rife in most of these countries, and it is only a firm that can conform to such an environment that can achieve economic success.

Political Interferences

Political interference is another challenge that is common in low and middle-income countries. India is a perfect example of a middle-income economy that may attract foreign investors. The country is home to over 1.2 billion people, making it the second-most populous country globally. It has a considerably large middle class, which is another factor that makes it attractive to foreign investors. However, Diyamett and Mutambla say that the political class often interfered with private sector businesses, especially during the electioneering period.20 The politicians often want to give the impression that they are fighting for the rights of the country’s common citizens to win elections. As such, they demand a reduction in consumer goods prices and an increase in the salaries paid to the employees. In some extreme cases, they even pass laws meant to improve the salaries and wages of the common people without giving due consideration to private sector firms’ sustainability under such conditions. It is not just in India, where we have political interference. The conditions are worse in North Korea. In this country, a small section of the political class, led by Kim Jong-Un, control the political space in the country. A foreign firm coming into this country must be ready to work closely with these rulers and do as they want to achieve success.

Low Purchasing Power

One of the major challenges for firms from donor countries targeting the market in low and middle-income countries is the low purchasing power. A study by Diyamett and Mutambla shows that a considerably high number of people in the sub-Saharan area still live below the poverty line.21 The population in this region is considerably high, but their purchasing capacity is very low. This explains why some firms have completely avoided these markets. Apple Inc. is known to produce high-quality phones, computers, and televisions. However, the company has not considered making a heavy investment in the African market because of the low purchasing power. Most of the population cannot afford these products, making the market less attractive. Car manufacturers specialized in very expensive cars, such as Lamborghini, also avoid these markets because of the low purchasing power. When most targeted customers cannot purchase a given product, it becomes advisable to avoid such a market.

Unique Tastes and Preferences

The unique tastes and preferences is another issue that must be taken into consideration when a firm is planning to enter a new market. Sometimes the unique preferences in the foreign market may be a cause of concern. It is not easy for a firm to completely change its products’ nature to be in line with what the new market needs unless it forms a strategic partnership with the new firm. For instance, a company planning to enter the Egyptian market with food products must understand customers’ unique tastes and preferences in this market as influenced by socio-cultural forces.22 It may be time-consuming and expensive to conduct such market research.

Mitigating Challenges Associated with Investing in Low-Income Countries

It is important to come up with ways of mitigating the challenges discussed above. The low and middle-income economies offer attractive business opportunities for foreign firms from donor countries. These firms will not only get attractive profits by operating in these developing economies, but they will also create employment opportunities for the locals. Their investments will improve poor people’s living standards in these countries through direct or indirect job creation.23 Solving the problems identified above will need one to understand their cause and nature. The following are the suggestions on how foreign investors from donor countries can overcome these challenges.

Managing the Problem of Poor Infrastructure

The problem of poor infrastructure is real, and a foreign firm must be ready to deal with it. As Diyamett and Mutambla say, it may not be easy for a foreign firm to address this problem because it is the government’s responsibility.24 However, a foreign firm can choose a strategically located location near populated areas to get easy access to labor and market. Locating the firm’s premises close to the population allows it to avoid cases where employees have to travel long distances to work. It also makes it easy to deliver products to the market. A firm may also decide to avoid crowded cities where traffic jams are common and settle in up-and-coming urban centers as long as it is assured access to the labor and market needed for its products. As an individual firm, it is impossible to put pressure on the government to address infrastructure problems. However, by partnering with other private firms, it is possible to petition the government to improve the country’s infrastructure.

Managing Security Concerns

Security is another concern that firms have to take into consideration when investing abroad. A firm can’t invest in a city that lacks security, such as Aleppo. An individual company or even a group of companies can do nothing to improve security in Aleppo. The only way would be to avoid such a city completely. If a firm has to invest in a country experiencing security problems, then it may be necessary to select cities that are secure carefully. For instance, in Nigeria, a firm may choose to invest in Lagos or Abuja, where security is not as bad as it is in the northern part of the country.25 Sometimes it may be advisable to avoid such a market completely and opt for a neighboring country, where security will be assured. Operating in a market where security is not guaranteed may be very dangerous.

Managing Corruption Menace

The corruption menace is a common problem in almost all of the emerging markets discussed above. Dealing with this problem may define the ability of a firm to achieve success. As Lessmann says, corruption is a very negative vice that denies a country the resources needed for infrastructural development.26 It causes poverty and sometimes death when the poor are denied access to necessities because their resources go into the pockets of the few. This problem poses the biggest dilemma for foreign firms planning to invest in foreign countries. It is easy to conform to the corrupt environment and work with the ruling class at the expense of the poor. A firm can also opt to avoid any corrupt dealings and be ready to face the long registration processes and other bottlenecks put in place by the ruling class to protect the masses. It may not be easy to achieve success if a firm decides to avoid any corrupt dealings. It is also ethically immoral for a firm to engage in corruption at the poor majority’s expense. Avoiding these markets is also more painful for the poor because they need jobs. Finding a balance between the two forces may be important.

Dealing with Political Interference

Political interference is another external environmental concern that a foreign firm has to deal with in some foreign markets. Like most of the challenges mentioned above, it is not easy for a firm to single-handedly deal with this problem, especially in a foreign country. The best way of dealing with this problem is to engage the government and employees whenever such issues arise.27 For instance, when there is a political clamor for the private sector to improve its salaries, the firm can engage its employees and explain to them the dangers of such decisions on the firm’s sustainability. It may also seek direct government intervention, working together with other firms to ensure that they are not forced to embrace policies that may threaten their own existence in the market.

Managing Low Purchasing Power

Managing the low purchasing power of the target may be easier to address than some of the above problems. According to Lessmann, when investing in a market with low purchasing power, a firm may need to find a way of dropping its products’ prices without jeopardizing its profitability.28 This may be done by either reducing the quantity or quality of the products or both. Reducing the quality of the product without compromising its ability to meet the customers’ needs is crucial. For instance, Apple may come up with alternative phones, computers, and television sets that meet the needs of the low-income earners in developing countries. This is the only way of tapping into this market. Lessmann says that sometimes the solution may lie in breaking the bulk into smaller, less expensive units.29 This is specifically the case for firms specializing in food products. Selling the product in smaller, less expensive units makes it easy for the firm to expand its market without compromising its profitability.

Dealing with Unique Tastes and Preference

Managing unique market tastes and preferences is also a critical but less complicated issue. Lessmann advises that when a foreign firm realizes that the host country has unique socio-cultural practices that make the customers’ tastes and preferences unique, then the best way out is to acquire a local firm or form a strategic partnership with a local firm instead of making direct market entry.30 This strategy allows the firm to use the locally acquired firm’s current structures and systems to continue its productions. The acquisition or strategic partnership allows the foreign firm to have employees and organizational systems and structures that are already in line with the market forces.

Drivers/Benefits of Investing in Low-Income Countries

Private sector firms need to invest in low and middle-income economies to expand their market shares and achieve success in their operations. The following are the benefits of investing in low-income countries that should drive the private sector to ignore this market.

Impressive Returns on Investment in the Energy Sector

The oil industry in some of the low-income economies is becoming very lucrative. Nigeria is an example of a low-income economy that is rich in oil reserves. Private companies from donor countries can take advantage of the country’s energy sector’s opportunity to earn attractive revenues. Uganda and South Sudan have also discovered oil reserves. However, these countries’ governments and local private sectors lack the technical skills and financial capability to invest in this sector. Investing in these sectors can be very rewarding for foreign firms.31 It can assure them of continued profitability for a considerably long period.

Growing Demand for Infrastructural Development

The low and middle-income economies are also keen on developing their infrastructure. According to Adesia, Gurria, and Clerk, countries such as Kenya, Ethiopia, Morocco, and South Africa have been making heavy investments to improve their transport infrastructure.32 Railway lines and roads worth billions of dollars are being put up across Africa. Most of these African governments are outsourcing foreign firms to undertake such massive infrastructure projects because of limited technical skills locally. Firms from donor countries should not ignore this massive opportunity.

Humanitarian Reasons

Some firms should consider expanding their operations to these regions primarily on humanitarian grounds. Sub-Saharan Africa is known to be home to many natural resources, yet many people often die of starvation. González says that this is caused by a poor exploiting mechanism and taking advantage of the existing resources.33 The primary drive may be for the firm to uplift these people’s living standards by eliminating absolute poverty.

Factors That Help the Private Sector to Invest in Low-Income Countries

The private sector in the donor countries should consider making investments into the low and middle-income economies to improve their profitability. They may also consider making such investments on humanitarian grounds as a way of helping the poor. However, measures should be put in place to make it possible for them to invest in these countries. Other than through their efforts to overcome the market challenges as discussed above, the donor countries’ governments also have a role in helping these firms expand their operations to the foreign markets.

What Government Can Do

As mentioned above, there are some challenges that individual firms cannot address individually because of their nature.34 At this stage, the host country government is expected to help these firms overcome the challenges. The following are the recommended ways through which these governments can help their firms invest in foreign markets.

  • Direct government-to-government negotiation between the donor and host countries. A foreign firm can petition its government to help it address political and corruption-related issues in the host market.
  • The government of the donor country can help in providing knowledge about the foreign market. It can commission government-funded research to create awareness about the host country.
  • The government can help these firms to access more funds to facilitate their expansion. It can also offer them tax holidays for a given period to ease their burden as they expand their operations.

Conclusion

Firms in donor countries need to invest in low and middle-income countries. These developing economies have massive opportunities that are yet to be fully tapped. It only requires a committed firm with adequate resources and skilled human resources to succeed in these countries. The construction and energy sectors are growing very rapidly, but the private sector in these countries lacks financial resources and skilled human resources to take advantage of these opportunities. The governments of donor countries should do everything within their power to help their firms invest in these low and middle-income economies as recommended above.

Bibliography

Akinwumi, Adesina, Angel Gurria, and Helen Clerk. African Economic Outlook 2016 Sustainable Cities and Structural Transformation. New York: United Nations Development Programme, 2016.

Alobari, Collins. “Exchange Rate and Foreign Direct Investment (FDI): Implications for Economic Growth in Nigeria.” Equatorial Journal of Finance and Management Sciences, 1.1 (2016): 11-19.

Bandyopadhyay, Subhayu, Todd Sandler, and Javed Younas. “Foreign Direct Investment, Aid, and Terrorism.” Oxford Economic Papers, 25.2 (2014): 25–50.

Blonigen, Bruce, and Jeremy Piger. “Determinants of Foreign Direct Investment.” Canadian Journal of Economics, 47.3 (2014): 775-810.

Claessens, Stijn, and Neeltje Horen. “Foreign Banks: Trends and Impact.” Journal of Money, Credit and Banking, 46.1 (2014): 295-317.

Diaconu, Laura. “Changes in the Foreign Direct Investments’ Inflows into the Developing Countries during the Last Decades.” The USV Annals of Economics and Public Administration Volume, 16.1 (2016): 47-53.

Diyamett, Bitrina, and Musambya Mutambla. “Foreign Direct Investment and Local Technological Capabilities in Least Developed Countries: Some Evidence from the Tanzanian Manufacturing Sector.” African Journal of Science, Technology, Innovation and Development, 6.5 (2015): 401-414.

Estrin, Saul, and Milica Uvalic. “Foreign Direct Investment into Transition Economies: Are the Balkans Different?” London School of Economics, 2.2 (2015): 1-39.

González, Anabel. Foreign Direct Investment as a Key Driver for Trade, Growth and Prosperity: The Case for a Multilateral Agreement on Investment. World Economic Forum, 2013.

Gourinchas, Olivier, and Olivier Jeanne. “Capital Flows to Developing Countries: The Allocation Puzzle.” Review of Economic Studies, 80.22 (2013): 1484–1515.

Kabir, Hassan, Rashid Mamunur, and Esther Castro. “Foreign Direct Investment and Investor Sentiment: A Causal Relationship.” Global Econ Q, 16. 4 (2016): 697–719.

Ki-moon, Ban. “Strengthening Investment Promotion Regimes for Foreign Direct Investment in the Least Developed Countries.” United Nations, 22.1 (2014): 69-90.

Ki-moon, Ban. World Investment Report: Investor Nationality Policy Challenges. United Nations, 2016.

Lessmann, Christian. “Foreign Direct Investment and Regional Inequality: A Panel Data Analysis.” China Economic Review, 24.1 (2013): 129–149.

Milner, Helen. “Symposium: The Regime for International Investment-Foreign Direct Investment, Bilateral Investment Treaties, and Trade Agreements.” World Politics, 66.1 (2014): 1–11.

Saqib, Najia, Maryam Masnoon, and Nabeel Rafique. “Impact of Foreign Direct Investment on Economic Growth of Pakistan.” Advances in Management & Applied Economics, 3.1 (2013): 35-45.

Footnotes

  1. Ban Ki-moon, “Strengthening Investment Promotion Regimes for Foreign Direct Investment in the Least Developed Countries,” United Nations 22, no. 1 (2014): 70.
  2. Hassan Kabir, Rashid Mamunur, and Esther Castro, “Foreign Direct Investment and Investor Sentiment: A Causal Relationship,” Global Econ Q 16, no. 4 (2016): 710.
  3. Olivier Gourinchas, and Olivier Jeanne, “Capital Flows to Developing Countries: The Allocation Puzzle,” Review of Economic Studies, 80.22 (2013): 1510.
  4. Ban Ki-moon, World Investment Report: Investor Nationality Policy Challenges, (United Nations, 2016), 55.
  5. Laura Diaconu, “Changes in the Foreign Direct Investments’ Inflows into the Developing Countries during the Last Decades,” The USV Annals of Economics and Public Administration Volume, 16.1 (2016): 51.
  6. Anabel González, Foreign Direct Investment as a Key Driver for Trade, Growth and Prosperity: The Case for a Multilateral Agreement on Investment, (World Economic Forum, 2013): 44.
  7. Bruce Blonigen, and Jeremy Piger, “Determinants of Foreign Direct Investment,” Canadian Journal of Economics, 47.3 (2014): 810.
  8. Subhayu Bandyopadhyay, Todd Sandler, and Javed Younas, “Foreign Direct Investment, Aid, and Terrorism,” Oxford Economic Papers, 25.2 (2014): 29.
  9. Bitrina Diyamett, and Musambya Mutambla, “Foreign Direct Investment and Local Technological Capabilities in the least Developed Countries: Some Evidence from the Tanzanian Manufacturing Sector,” African Journal of Science, Technology, Innovation and Development, 6.5 (2015): 410.
  10. Helen Milner, “Symposium: The Regime for International Investment-Foreign Direct Investment, Bilateral Investment Treaties, and Trade Agreements,” World Politics, 66.1 (2014): 7.
  11. Christian Lessmann. “Foreign Direct Investment and Regional Inequality: A Panel Data Analysis.” China Economic Review 24, no. 1 (2013): 145.
  12. Najia Saqib, Maryam Masnoon, and Nabeel Rafique, “Impact of Foreign Direct Investment on Economic Growth of Pakistan,” Advances in Management & Applied Economics, 3.1 (2013): 38.
  13. Alobari Collins, “Exchange Rate and Foreign Direct Investment (FDI): Implications for Economic Growth in Nigeria,” Equatorial Journal of Finance and Management Sciences, 1.1 (2016): 16.
  14. Stijn Claessens, and Neeltje Horen, “Foreign Banks: Trends and Impact,” Journal of Money, Credit and Banking, 46.1 (2014): 310.
  15. Christian Lessmann, “Foreign Direct Investment and Regional Inequality: A Panel Data Analysis,” China Economic Review, 24.1 (2013): 133.
  16. Saul Estrin, and Milica Uvalic, “Foreign Direct Investment into Transition Economies: Are the Balkans Different,” London School of Economics, 2.2 (2015): 29.
  17. Ibid., 31
  18. Claessens and Horen, Foreign Banks: Trends and Impact, 295.
  19. Ibid., 311.
  20. Diyamett and Mutambla, Foreign Direct Investment, 404.
  21. Ibid., 407.
  22. Estrin and Uvalic, Foreign Direct Investment into Transition Economies, 28.
  23. Ki-moon Ban, Strengthening Investment Promotion Regimes, 75.
  24. Ibid., 411.
  25. Ibid., 415.
  26. Lessmann, Foreign Direct Investment, and Regional Inequality, 131.
  27. González, Foreign Direct Investment as a Key Driver for Trade, 88.
  28. Lessmann, Foreign Direct Investment, and Regional Inequality, 134.
  29. Ibid., 139.
  30. Ibid., 144.
  31. González, Foreign Direct Investment as a Key Driver for Trade, 88.
  32. Adesina Akinwumi, Angel Gurria, and Helen Clerk, African Economic Outlook 2016 Sustainable Cities and Structural Transformation (New York: United Nations Development Programme, 2016), 41.
  33. Ibid., 101.
  34. Ibid., 11.
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