Foreign ownership and firm performance: Evidence from the South African informal sector

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dc.contributor.authorBolarinwa, Segun Thompson
dc.contributor.authorSimatele, Municinga
dc.contributor.authorKapingura, Forget Mingiri
dc.date.accessioned2026-08-19T10:13:02Z
dc.date.available2026-08-19T10:13:02Z
dc.date.issued2024-05-24
dc.descriptionResearch paper
dc.description.abstractThis paper investigates the effect of foreign ownership on firm performance in the South African informal sector. Using the data of 1097 informal businesses sourced from the World Bank Enterprises Survey conducted in four Township provinces in South Africa (Gauteng, KwaZulu-Natal, Eastern Cape and Western Cape) in 2020, the paper aims to address two issues: what is the effect of foreign ownership on performance in the South African informal sector and what factors drive foreign-ownership gap in the South African informal sector if it exists? The empirical analysis uses the multivariable decomposition technique and finds a performance gap between locally and foreign-owned businesses in the South African informal sector. A decomposition of factors shows that differences in endowments can explain the bulk of the gap. Discriminatory/unexplained factors, likely capturing the business culture, also play a significant role. Caution is given when seeking to curb foreign business participation in the informal sector.
dc.identifier.citationSegun Thompson Bolarinwa, Munacinga Simatele & Forget Kapingura (2024) Foreign ownership and firm performance: Evidence from the South African informal sector, Development Southern Africa, 41:3, 588-609, DOI: 10.1080/0376835X.2024.2352061
dc.identifier.urihttp://hdl.handle.net/20.500.11837/4951
dc.language.isoen
dc.publisherTaylor and Francis Group, Routledge
dc.relation.ispartofseriesDevelopment Southern Africa
dc.subjectForeign ownership
dc.subjectinformal sector
dc.subjectmultivariate decomposition
dc.subjectSouth Africa
dc.titleForeign ownership and firm performance: Evidence from the South African informal sector
dc.typeArticle
person.identifier.orcidBolarinwa, Segun Thompson 0000-0002-6024-6569
person.identifier.orcidSimatele, Municinga 0000-0001-9182-2701
person.identifier.orcidKapingura, Forget Mingiri 0000-0002-5808-5612

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