Publication

This paper examines the extent to which differences in the institutional environment in the host and source countries of multinational enterprises (MNEs) influence their ties to the domestic markets in Sub-Saharan Africa. The authors argue that an understanding of local procedures and customs when interacting with suppliers is important when creating links to the domestic market, especially when contract enforcement and control of corruption efforts are lacking. They suggest that industrial policies can further encourage domestic links, direct involvement of foreign investors, and security measures to benefit both MNEs and local institutions in the region.