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WP/08 Determinants of Industrial Embeddedness: Evidence from African Manufacturing Firms

Recent developments in policy initiatives as well as some current practical events have combined to put the spotlight on the issue of industrial embeddedness in sub-Saharan Africa. Though extant research documents some stylized facts, as determinants of its manifestations, their relevance to realities in the sub-continent, have until now been overlooked. Yet, it is difficult to ignore the fact that its constituent economies possess some peculiar attributes with potentially significant implications for embeddedness behaviour. Using data for the country of Lesotho, a probit model is estimated to ascertain the veracity of some of the widely acclaimed explanatory factors. We find, as we argue, that among all, the issue of supply potentials appears the most important.
Publisher:
UNU-WIDER
Series:
WIDER Working Paper
Volume:
2011/08
Title:
WP/08 Determinants of Industrial Embeddedness: Evidence from African Manufacturing Firms
Authors:
Abdelrasaq Na-Allah
Publication date:
January 2011
ISBN 13 Web:
978-92-9230-371-6
Copyright holder:
© UNU-WIDER
Copyright year:
2011
Keywords:
industrial embeddedness, supplier linkages, manufacturing, probit model, sub-Saharan Africa
JEL:
L60, F23, O25, O55
Project:
African Development: Myths and Realities
Sponsor:
UNU-WIDER gratefully acknowledges the financial contributions to the research programme by the governments of Denmark (Royal Ministry of Foreign Affairs), Finland (Ministry for Foreign Affairs), Sweden (Swedish International Development Cooperation Agency—Sida) and the United Kingdom (Department for International Development—DFID).
Format:
online
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