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Foreign direct investment and local spillovers in the apparel sector in Sub-Saharan Africa

Cornelia Staritz

Wien, Juni 2013

Foreign direct investment (FDI) in the apparel sector in several Sub-Saharan African countries has experienced significant growth in the context of preferential trade agreements. But expectations of FDI leading to spillovers to the local economy and the development of a locally-embedded apparel export industry have not materialized. A shift from FDI attraction through fiscal incentives to more strategic industrial policies that target FDI spillovers, local value added and linkages is urgently needed for broader local development effects.

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