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Africa Foreign Investor Survey 2005 - unido

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4. Size profiles for different subgroups<br />

of investors<br />

This chapter gives a finer description of the survey sample<br />

by providing cross tabulations of the frequencies<br />

and firm size profiles for the six investor type categories<br />

under study (organizational structure, origin, main sector,<br />

market orientation, age and share structure). The<br />

size profile is given for each cross tabulation cell in the<br />

form of the mean, median and sum for sales, book values<br />

and workforce. In the case of frequency cross tabulations<br />

the significance level is given to indicate if, and to what<br />

degree, we can be confident that difference between cell<br />

values is not a chance occurrence.<br />

The size profile graphs reflect the varying trends<br />

between sales and book values on the one hand and<br />

employment on the other. The means and medians<br />

looked at together provide a sense of the range of the size<br />

distribution in the particular group and the figure for the<br />

sum gives a feel of the significance of each group in terms<br />

of absolute value.<br />

First, within the category of organizational structure,<br />

L-TNCs, S-TNCs and FEs are analysed by giving:<br />

(a) Size of the firms within each group;<br />

(b) The composition of each group in terms of main<br />

sectors and<br />

(c) The composition of each group in terms of the age<br />

of the firms (period of entry).<br />

The North and South origin investor groups are looked<br />

at to see how they differ from each other in terms of:<br />

(a) Size of the firms;<br />

(b) The composition of the 15 subsectors in terms of<br />

investors of North and South origin;<br />

(c) The variations within the North and South groups<br />

in terms of organizational structure;<br />

(d) The variations within the North and South groups<br />

in terms of period of entry (age) of the investor.<br />

The three market orientation groups, the local market<br />

seekers, regional exporters and global exporters, are<br />

compared to each other to see if there are significant variations<br />

by looking at:<br />

(a) The composition of the 15 subsectors in terms of local,<br />

regional and global market-oriented foreign investors;<br />

(b) Size of the firms within the three market orientation<br />

categories;<br />

(c) The variations within North and South investor<br />

origin groups in terms of market orientation.<br />

The three main sectors, agro-business (primary), manufacturing<br />

(secondary) and services (tertiary), are studied<br />

in terms of:<br />

(a) Size of the firms in each main sector;<br />

(b) The composition of each main sector in terms of<br />

North-South;<br />

(c) The composition of each main sector and subsector<br />

in terms of investors’ region of origin;<br />

(d) The variations within each main sector in terms of<br />

period of entry (age) of the investor.<br />

The share ownership categories of joint ventures and<br />

wholly-owned are also analysed to determine the characteristics<br />

of each in terms of:<br />

(a) Size of the firms;<br />

(b) The composition of each category in terms of subsector<br />

and investors’ region of origin;<br />

(c) The variations of each category in terms of period<br />

of entry (age) of the investor<br />

(d) The variations in terms in terms of North-South;<br />

Trends are analysed by looking at the changes in the<br />

make up of the age groups of the firms (or the periods of<br />

entry) in terms of:<br />

(a) <strong>Investor</strong>s from which regions arrived when;<br />

(b) Entry trends in the different subsectors;<br />

(c) Size of the firms that started operations in different<br />

time periods;<br />

(d) Market orientation of firms that started operations<br />

at different time periods.<br />

4 | Size profiles for different subgroups of investors<br />

29

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