Geographic Distribution of Output Sales and Input Purchases in the

INVESTMENT
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TRADE LINKAGES IN AFRICAN
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ASIAN COMMERCE
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and India also account fora substantial portion of inputs—each locale supplies about 13 percent of total input purchases by the surveyed firms.
The geographic distribution of output sales and input purchases varies significantly across surveyed firms according to nationality. Particularly noteworthy in table 6.6 is the fact that both Chinese and Indian businesses operating in Africa sell a significantly larger amount of output in other
African markets outside the local market than do their African business counterparts. This finding is consistent with data presented above suggesting that non-African firms operating in Africa appear to engage more in regional integration on the continent than do domestic firms. Interestingly,
the median African firm surveyed indicates that its sales to Europe and
North America account for 4 percent and 1 percent, respectively, of total sales in 2005, whereas the median Chinese and Indian firms indicate they sell none in those two markets.
The observed pattern of origin markets used by firms of different nationality operating in Africa to procure inputs is considerably different than that of destination markets for output sales see table 6.7. Not surprisingly,
all surveyed firms, regardless of nationality, substantially tap their home markets for inputs. But there is a surprisingly significant heterogeneity. Atone extreme, African firms tend to rely very heavily on local markets for inputs, with such purchases constituting 60 percent of total inputs bought;
at the same time, 13 percent of African firms inputs are bought in Europe.
TABLE 6.6

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