Foreign direct investment and structural transformation in Africa

dc.contributor.authorHOEKMAN, Bernard M.
dc.contributor.authorSANFILIPPO, Marco
dc.contributor.authorTAMBUSSI, Margherita
dc.date.accessioned2025-05-29T09:09:53Z
dc.date.available2025-05-29T09:09:53Z
dc.date.issued2025
dc.descriptionPublished online: 12 April 2025
dc.description.abstractThis paper analyzes the relationship between inward foreign direct investment (FDI) and the structural transformation of local labor markets in Africa. We combine geolocalized information on the distribution of FDI with a novel database that provides information from 40,633,256 individuals in 2,570 subnational units from 1987 to 2019. We find that FDI contributes to increased employment and shifts of workers towards modern industries and higher-skilled occupations. Results are heterogeneous, reflecting the characteristics of the foreign investors and their business activities. FDI projects are associated with increases in internal migration, while geospatial analysis of changes in the performance of domestic firms exposed to nearby FDI projects provides evidence of positive spillovers, suggesting complementary mechanisms through which FDI drives structural change.
dc.format.mimetypeapplication/pdf
dc.identifier.citationThe World Bank economic review, 2025, Art. lhaf009, OnlineFirst
dc.identifier.doi10.1093/wber/lhaf009
dc.identifier.issn0258-6770
dc.identifier.issn1564-698X
dc.identifier.otherlhaf009
dc.identifier.urihttps://hdl.handle.net/1814/92755
dc.language.isoen
dc.orcid.putcode1814/78893:184986870
dc.orcid.putcode1814/78445:184986871
dc.publisherOxford University Press
dc.relation.ispartofThe World Bank economic review
dc.relation.ispartofseries[Global Governance Programme]
dc.relation.ispartofseries[Global Economics]
dc.rightsinfo:eu-repo/semantics/openAccess
dc.rights.licenseAttribution 4.0 Internationalen
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/
dc.subjectFDI
dc.subjectEmployment
dc.subjectStructural transformation
dc.subjectAfrica
dc.subjectF23
dc.subjectL16
dc.subjectN17
dc.titleForeign direct investment and structural transformation in Africa
dc.typeArticle
dspace.entity.typePublication
person.identifier.orcid0000-0002-6839-7142
person.identifier.orcid0000-0001-8062-3352
person.identifier.other36413
person.identifier.other32940
relation.isAuthorOfPublicationaa98bfa2-ebb3-42d2-85b0-6f57785eb1aa
relation.isAuthorOfPublication1fd0538f-f969-49a1-8534-d031b31398d2
relation.isAuthorOfPublication.latestForDiscoveryaa98bfa2-ebb3-42d2-85b0-6f57785eb1aa
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