Foreign ownership and firm performance in Sub-Saharan Africa

Authors: Webster, A., Okafor, G. and Barrow, C.

Journal: Transnational Corporations Review

Publisher: Taylor && Francis

ISSN: 1918-6444

DOI: 10.1080/19186444.2022.2078630.

https://eprints.bournemouth.ac.uk/37097/

Source: Manual

Foreign ownership and firm performance in Sub-Saharan Africa

Authors: Webster, A., Okafor, G. and Barrow, C.

Journal: Transnational Corporations Review

Volume: 14

Issue: 4

Pages: 418-437

Publisher: Taylor && Francis

ISSN: 1918-6444

Abstract:

Our study investigates the effects of foreign ownership on firm performance with respect to profitability, productivity, export intensity, and skills acquisition in Sub-Saharan African (SSA) countries. This is particularly important given that in the last three decades, the stock of FDI has increased by over 20,000% in SSA countries. To achieve the objectives of this paper, we employed firm- and country-level data from the World Bank Enterprise Surveys and the World Bank Development Indicators, respectively. Results of the least squares dummy variable (LSDV) and propensity score matching (PSM) estimations showed that foreign ownership was positively associated with higher levels of financial profitability, productivity, exports, and skilled labour acquisition. Policy implications were deduced from the findings.

https://eprints.bournemouth.ac.uk/37097/

Source: BURO EPrints