International joint ventures in West Africa: source of funding and barriers to finance

Agyenim Boateng, Akamavi Raphael, Roger Henderson

    Research output: Contribution to journalArticle

    Abstract

    This paper examines the sources of funds and barriers to finance of international joint ventures (IJVs) in West Africa. A sample of 57 IJVs based in Ghana and Nigeria is examined. The findings suggest a pronounced tendency to finance IJVs through equity contributions from the partners and to rely on borrowing and retained profits to finance future growth. The study also finds that size of capital required to form an IJV and the organisational type of the host partner are not independent. Exchange risk, poor infrastructure, political instability and transfer risks are found to be the major barriers to finance of IJVs in Ghana and Nigeria.
    Original languageEnglish
    Pages (from-to)59-71
    Number of pages13
    JournalInternational Journal of Business Studies
    Volume10
    Issue number1
    Publication statusPublished - Jun 2002

    Keywords

    • joint ventures
    • international business
    • Ghana
    • Nigeria

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