Foreign and Domestic Firms Linkages: Kenyan Empirical Sectors Analysis

The book gives a comprehensive Analysis of Foreign direct investment, trends and linkages to domestic firms in Kenya in the three sectors; manufacturing, Agricultural and service sectors. In the recent years, it has been observed that countries compete with each other to attract foreign investment. Countries have gone further than simply removing barriers to inward foreign investment and have taken a more pro- active approach towards attracting Foreign Investment through the use of fiscal and financial incentives. This book attempts to empirically examine if in Kenya, domestic firms have benefited from foreign firms using a panel data for the period 2009 to 2011. The book mainly deals with the linkages, nature of spillovers and the determinant of spillovers to domestic firms in Kenya. Chapter four of the book gives the analysis and the results. The various results from the regression model from the three sectors have been analyzed and compared with various studies that have also been conducted elsewhere. Finally, policy recommendations are given to individual firms and the government.