Chinese construction companies in Angola : a local linkages perspective
Date
2011-03
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The Open University
Abstract
China tends to spearhead its economic overtures to African countries through high-level bilateral negotiations. The prevailing view is that Chinese companies operating in African countries do not use local labour, materials or any other inputs in the undertaking of their contracts.
Focusing on the strategic orientation of large Chinese companies state-owned enterprises (SOEs) operating in Africa’s infrastructure sectors, the report seeks to focus on the determinants of their sourcing behaviour, the manner in which this reflected in their use of local inputs, and in their linkages to the national system of innovation (NSI) in an African country.
Using the case study of Angola, the objective of this report was to firstly understand how Chinese construction companies develop their sourcing and procurement strategies in their African operations, what factors affect these strategies and whether there is anything unique in the way in which local linkages with the host country are developed or avoided. Secondly the research seeks to determine how Chinese construction companies can be further encouraged to pursue local linkages in their operations.
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Working Paper
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Keywords
CHINESE CONSTRUCTION COMPANIES, ANGOLA, CONSTRUCTION INDUSTRY, PUBLIC ENTERPRISES, ECONOMIC INFRASTRUCTURE, FOREIGN INVESTMENT, CHINA