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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Indigenization and technological dependency
Author:Hoogvelt, Ankie
Year:1980
Periodical:Development and Change
Volume:11
Issue:2
Period:April
Pages:257-272
Language:English
Geographic term:Nigeria
Subjects:multinational enterprises
business
Africanization
Link:https://doi.org/10.1111/j.1467-7660.1980.tb00068.x
Abstract:The indigenisation experience of industrial firms in Kano suggets that transnational corporations have tended to alter the productive structure of their Nigerian subsidiaries in order first to relocate their control over these subsidiaries away from economic and management functions and toward technological functions, and second, to replace traditional dividend earnings with trade earnings. Paradoxically, they have been encouraged to develop this strategy by the government's method of implementation of the indigenisation decrees of 1972 and 1977 which forced companies into capital expansion. The resulting technoligical overkill of Negerian industry has a negative effect on both the labour absorption rate of industry and the nation's balance of payments. The Kano experience suggests that 'indigenisation - as contrasted with 'natioralisation' - is not a suitable policy for promoting the 'localisation' of foreign industry in Nigeria. Notes, tab.
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