“Between-the-Border” Factors

22
AFRICA
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S SILK ROAD
:
CHINA AND INDIA
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S NEW ECONOMIC FRONTIER
certain—and often, large—costs. Such costs arise from, among other things, assessing new market opportunities, searching for new trading or investment partners, establishing financing and marketing channels, transferring personnel and technology, conforming with customs regulations and technical standards, and determining how best to utilize logistical,
transport, and communications systems, especially for landlocked countries, which are prominent on the Sub-Saharan continent.
These costs can be lowered through a variety of means. Search costs, for example, can be reduced through use of either formal channels—whether on a businesses-to-business or a government-to-government basis—or informal soft networks, such as ethnic networks and the diasporas.
TABLE 3
Remedying Information Market Imperfections
(percent)
Ethnic origin of owner
Nationality of owner
African
Chinese
Indian
European
African
100 4
48 Chinese 93 Indian 0
45 European 0
4 Other 4
3 Source World Bank staff 5
10 15 20 25 30
Ghana
Senegal
South Africa
Tanzania total
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