Cover IMF Working Papers
Buy Book in Print
FDI, Global Value Chains, and Local Sourcing in Developing Countries
Author:
Vito Amendolagine null

Search for other papers by Vito Amendolagine in
Current site
Google Scholar Close
,
Mr. Andrea F Presbitero
Search for other papers by Mr. Andrea F Presbitero in
Current site
Google Scholar Close
https://orcid.org/0000-0003-4622-941X
,
Roberta Rabellotti null

Search for other papers by Roberta Rabellotti in
Current site
Google Scholar Close
,
Marco Sanfilippo null

Search for other papers by Marco Sanfilippo in
Current site
Google Scholar Close
, and
Adnan Seric null

Search for other papers by Adnan Seric in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2017: Issue 284
Language:
English
Publication Date:
21 Dec 2017
DOI:
https://doi.org/10.5089/9781484335109.001
ISBN:
9781484335109
ISSN:
1018-5941
Pages:
40
Keywords:
WP; firm; global value chain; investor; supplier; Foreign Direct Investment; Global Value Chains; Local Sourcing; Africa; Vietnam; firm propensity; GVC involvement; firm level; foreign investor; FDI spillover; GVC position; GVC indicator; Production growth; Exports; Foreign corporations; Global; Sub-Saharan Africa
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (1.6 MB) Download Epub
The local sourcing of intermediate products is one the main channels for foreign direct investment (FDI) 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 of 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.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund