Advanced Evaluation of Agricultural Commodity Exchange Development Training Course

Course Introduction

Foreign direct investment is widely regarded as a potential driver of economic transformation, technological advancement and enterprise development. However, the extent to which foreign-owned companies improve the performance of domestic enterprises depends on the strength of local business capabilities, the structure of supply chains, workforce skills, market competition and the wider investment environment. The Evaluating Foreign Direct Investment Spillovers on Local Enterprises Training Course equips participants with analytical frameworks and practical evaluation techniques for determining whether foreign investment generates measurable benefits for local firms. It examines how to distinguish investment inflows and direct commercial relationships from the wider productivity, knowledge and innovation effects that may emerge throughout the host economy.

Understanding FDI spillovers requires examining the different channels through which foreign investors influence local enterprises. These channels include supplier and customer relationships, imitation of production techniques, competition, worker mobility, management knowledge transfer, technical assistance and participation in international value chains. The effects may vary substantially across industries, enterprise sizes, regions and stages of economic development. Participants will learn to identify these transmission channels, develop testable hypotheses and select indicators that capture both direct linkages and indirect effects. Particular emphasis will be placed on distinguishing observable business transactions from genuine capability improvements and on understanding why the presence of multinational enterprises does not automatically produce widespread benefits for domestic firms.

A credible spillover assessment must combine enterprise-level evidence with an understanding of the economic environment in which businesses operate. Changes in productivity, sales, employment, wages, exports, innovation and investment can provide useful evidence, but they must be interpreted alongside firm characteristics, sectoral conditions and wider economic developments. This course examines how to develop baseline assessments, select comparison groups, construct longitudinal datasets and apply appropriate statistical methods to investigate changes associated with foreign investment exposure. Participants will also explore the challenges of data availability, informal economic activity, firm selection and reverse causality, ensuring that evaluation findings are presented with appropriate caution and methodological transparency.

The programme also examines how local enterprises absorb, adapt and apply knowledge originating from foreign-owned companies. Domestic firms with stronger management practices, skilled employees, financial resources, technological infrastructure and quality certification may be better positioned to meet multinational buyers' requirements and benefit from new production methods. Conversely, capability gaps may prevent smaller firms from becoming suppliers or adopting improved practices, while competitive pressures may disadvantage enterprises unable to adjust. Participants will assess these enabling conditions and learn how to measure supplier development, workforce upgrading, technology adoption and innovation outcomes. The course also addresses the possibility of negative spillovers, including market displacement, loss of skilled personnel, increased competitive pressure and uneven distribution of benefits.

Effective evaluation should inform investment policy, enterprise development programmes and institutional coordination. Findings can help governments identify sectors with strong potential for domestic supplier linkages, design more targeted supplier-development initiatives, improve skills programmes and align investment promotion with industrial and innovation strategies. Participants will examine how to connect firm-level evidence with policy interventions while avoiding unsupported conclusions about the effectiveness of investment incentives or linkage programmes. They will also consider how to evaluate interventions such as supplier databases, matchmaking platforms, technical assistance, certification support and workforce training, including whether these initiatives generate additional benefits beyond what would have occurred without intervention.

Finally, the course focuses on converting analytical findings into actionable recommendations and sustainable monitoring systems. Participants will develop practical approaches for presenting evidence to policymakers, investment promotion agencies, economic development institutions, industry associations and private-sector stakeholders. They will learn to communicate the magnitude, distribution and uncertainty of observed spillovers, identify enterprises and regions that remain disconnected from foreign investment opportunities, and propose proportionate measures to improve domestic absorptive capacity. Through applied exercises and an integrated evaluation framework, participants will strengthen their ability to assess whether foreign investment contributes to local enterprise upgrading, explain why outcomes differ across contexts and support evidence-based strategies for more inclusive and productive economic development.

Duration

10 days

Who Should Attend

• Senior government officials responsible for foreign investment, industrial development, enterprise policy and economic transformation.

• Investment promotion agency executives and analysts assessing the domestic economic contribution of foreign investment projects.

• Economists and researchers studying productivity, innovation, firm performance and the effects of multinational enterprise activity.

• Monitoring, evaluation and learning specialists designing investment-related programme assessments and impact evaluations.

• Officials responsible for local supplier development, domestic enterprise participation and multinational-local business partnerships.

• SME development professionals supporting enterprise upgrading, quality improvement, productivity and access to new markets.

• Trade and industry policymakers responsible for manufacturing competitiveness, export development and global value chain participation.

• Officials in ministries of finance, planning and economic development evaluating investment incentives and expected economic benefits.

• Statistical officers and data analysts working with enterprise surveys, business registers and firm-level administrative data.

• Regional and local economic development practitioners assessing the geographic distribution of foreign investment benefits.

• Industry association representatives supporting domestic suppliers and business-to-business cooperation.

• Development partners and technical assistance specialists working on investment linkages and private-sector development.

• University lecturers and applied researchers involved in international economics, development studies and industrial policy.

• Corporate responsibility, sustainability and supply chain specialists assessing local sourcing, skills development and business linkages.

• Consultants and programme managers designing or evaluating supplier-development and investment spillover initiatives.

Course Objectives

• Explain the economic concepts, transmission channels and enabling conditions that determine how foreign direct investment may influence the productivity and competitiveness of local enterprises.

• Develop a structured evaluation framework linking foreign investment exposure to measurable changes in domestic firm productivity, innovation, employment, wages, exports and investment.

• Identify and assess horizontal, backward and forward spillovers, distinguishing within-industry competitive effects from knowledge transfer through supplier and customer relationships.

• Select appropriate firm-level indicators, baseline measures, comparison groups and data sources for evaluating spillovers across sectors, enterprise sizes and geographic areas.

• Apply quantitative and qualitative research methods to examine the relationship between foreign investment presence, domestic enterprise performance and changes in local business capabilities.

• Evaluate the role of supplier development, technical assistance, workforce training, certification and business matchmaking in strengthening domestic enterprise participation in multinational value chains.

• Assess enterprise absorptive capacity by examining management quality, workforce skills, technological readiness, innovation capability, financing and compliance with buyer requirements.

• Identify potential negative effects of foreign investment, including competitive displacement, skilled-worker shortages, unequal market access and the concentration of benefits among a limited number of firms.

• Analyse differences in spillover outcomes across industries and regions to identify where investment policy and enterprise support can generate the greatest potential development benefits.

• Strengthen data collection, data quality, confidentiality and analytical reporting practices for credible and repeatable evaluation of FDI-related enterprise outcomes.

• Translate evaluation findings into practical recommendations for investment promotion, supplier development, industrial policy, skills programmes and domestic enterprise competitiveness.

• Prepare an actionable spillover evaluation framework with defined indicators, methodological choices, reporting responsibilities and a plan for monitoring outcomes over time.

Comprehensive Course Outline

Module 1: Foundations of Foreign Direct Investment Spillovers

• Define foreign direct investment spillovers and distinguish direct investment effects from indirect benefits transmitted to other firms in the host economy.

• Examine the economic rationale for expecting FDI to influence productivity, innovation, management practices, technology adoption and enterprise competitiveness.

• Analyse why spillover effects differ across countries, regions, sectors and firms, including the influence of investment characteristics and local economic conditions.

• Review the principal questions evaluators must answer when determining whether local enterprises have benefited from foreign investor activity.

Module 2: Types and Transmission Channels of FDI Spillovers

• Examine horizontal spillovers occurring among firms in the same industry through demonstration effects, imitation, competition and the diffusion of business practices.

• Analyse backward linkages through which foreign investors may transfer knowledge, technical specifications and quality requirements to domestic suppliers.

• Assess forward linkages arising when local enterprises use improved inputs, services, technologies or distribution opportunities associated with foreign-owned firms.

• Evaluate spillovers through labour mobility, employee training, strategic partnerships, business networks, joint innovation and the movement of experienced managers.

Module 3: Developing a Theory of Change for Spillover Evaluation

• Construct a theory of change linking foreign investment characteristics, local linkages, enterprise capabilities and expected firm-level development outcomes.

• Identify the assumptions required for knowledge transfer, supplier upgrading, workforce development and productivity improvements to occur.

• Develop evaluation questions that distinguish immediate outputs, such as supplier contracts, from intermediate outcomes and longer-term economic effects.

• Map stakeholders, intervention pathways, contextual risks and external influences that may affect the interpretation of observed spillover results.

Module 4: Baselines, Indicators and Measurement Frameworks

• Define indicators for productivity, sales, employment, wages, capital investment, innovation, exports and other relevant measures of domestic enterprise performance.

• Establish baseline conditions and follow-up measurement schedules that allow evaluators to compare enterprise outcomes over appropriate time horizons.

• Select indicators for foreign ownership exposure, geographic proximity, supply chain participation, local sourcing and access to foreign enterprise knowledge.

• Develop an indicator matrix specifying definitions, calculation methods, data sources, disaggregation, reporting frequency and responsibility for data validation.

Module 5: Enterprise Data Collection and Research Design

• Identify appropriate data sources, including enterprise surveys, business registers, tax records, customs data, employment records and supplier databases.

• Design questionnaires and interview protocols to collect information about foreign investor relationships, technology adoption, workforce practices and business performance.

• Develop sampling strategies that represent different enterprise sizes, ownership structures, sectors, regions and degrees of exposure to foreign investment.

• Establish protocols for data confidentiality, informed participation, secure data handling, consistency checks and documentation of methodological limitations.

Module 6: Quantitative Analysis of Productivity and Enterprise Performance

• Calculate and interpret labour productivity, value added per employee, sales growth and other measures suitable for assessing domestic enterprise performance.

• Examine trends in firm profitability, investment, employment, wages and export activity while accounting for differences in enterprise characteristics.

• Apply descriptive statistics, regression analysis and panel-data techniques where appropriate to examine relationships between foreign investment exposure and firm outcomes.

• Interpret statistical results with attention to uncertainty, measurement error, sectoral differences and the distinction between observed associations and causal effects.

Module 7: Causal Inference and Impact Evaluation Methods

• Explain selection bias, reverse causality, omitted-variable bias and other methodological problems that complicate the attribution of enterprise outcomes to FDI.

• Assess the suitability of comparison groups, matching methods, difference-in-differences and other quasi-experimental designs where data and assumptions permit.

• Develop evaluation strategies that compare enterprises with different levels of foreign investment exposure while accounting for relevant pre-existing differences.

• Document assumptions, robustness checks, sensitivity analysis and limitations to ensure that conclusions remain proportionate to the available evidence.

Module 8: Supplier Linkages and Domestic Value Chain Integration

• Measure local sourcing patterns, supplier participation, contract duration, procurement value and the share of foreign investor purchases supplied by domestic enterprises.

• Assess whether local suppliers experience improvements in production processes, quality assurance, delivery reliability, certification and technical capabilities.

• Examine supplier-development initiatives, including technical assistance, mentoring, matchmaking, financing support and opportunities to meet multinational procurement standards.

• Identify barriers preventing local enterprises from entering or expanding within foreign investor supply chains, including scale, cost, logistics and compliance requirements.

Module 9: Technology Transfer, Innovation and Knowledge Diffusion

• Identify indicators for technology adoption, process improvement, product development, research collaboration and changes in enterprise innovation activity.

• Assess whether domestic enterprises adopt production methods, quality systems, digital tools and managerial practices introduced through foreign investor relationships.

• Examine how collaboration, licensing, employee mobility and informal knowledge exchange contribute to the diffusion of technical and organisational capabilities.

• Evaluate the conditions that support effective learning, including employee qualifications, management commitment, technological readiness and access to finance.

Module 10: Workforce Development and Labour Mobility Effects

• Measure workforce training, occupational skills, wage changes, labour productivity and other outcomes associated with exposure to foreign-owned enterprises.

• Examine how employee movement between multinational enterprises and domestic firms may transfer technical knowledge, managerial experience and professional practices.

• Assess potential competition for skilled workers, staff turnover, wage pressures and the consequences for the capabilities of local enterprises.

• Design indicators that distinguish training delivered by foreign investors from demonstrated improvements in employee competencies and enterprise performance.

Module 11: Competition, Market Structure and Negative Spillovers

• Analyse how foreign market entry affects domestic firms through competitive pressure, market share changes, price adjustments and changes in business survival.

• Assess whether foreign investor expansion encourages local enterprises to upgrade or contributes to displacement, exit or reduced access to customers and skilled workers.

• Examine market concentration, barriers to entry, differences in financing capacity and other conditions that may influence the distribution of investment benefits.

• Develop balanced reporting approaches that capture positive, negative and heterogeneous effects instead of assuming that every form of FDI generates net benefits.

Module 12: Differences Across Sectors, Firm Sizes and Regions

• Compare spillover patterns across manufacturing, agriculture, extractive industries, tourism, logistics, digital services and other economically relevant sectors.

• Examine how microenterprises, small and medium-sized enterprises and larger domestic firms differ in their ability to absorb foreign investor knowledge.

• Assess geographic differences in access to infrastructure, skilled labour, innovation networks, markets and foreign-owned enterprise clusters.

• Use disaggregated analysis to identify which enterprise groups benefit, which remain excluded and where further evaluation or targeted policy action is warranted.

Module 13: Evaluating Supplier Development and Linkage Programmes

• Assess the design and implementation of programmes that connect multinational investors with capable local suppliers and prospective domestic business partners.

• Measure participation, completion, supplier qualification, contract acquisition and subsequent improvements in enterprise capabilities and commercial performance.

• Examine whether technical assistance, certification support, digital readiness initiatives and financing interventions produce additional benefits for participating firms.

• Compare programme costs and outcomes while considering participant selection, implementation quality, time lags and the availability of credible comparison evidence.

Module 14: Policy, Institutional Coordination and Enabling Conditions

• Evaluate how investment policy, industrial development strategies, competition policy and SME support programmes influence opportunities for local enterprise spillovers.

• Examine coordination between investment promotion agencies, ministries, training institutions, standards bodies, business associations and development finance organisations.

• Assess how infrastructure, education, innovation systems, access to finance and regulatory quality shape domestic firms' ability to benefit from foreign investment.

• Formulate evidence-based recommendations that improve local linkages and enterprise readiness while respecting applicable competition rules and investment commitments.

Module 15: Reporting, Interpretation and Use of Evaluation Findings

• Prepare analytical reports presenting research questions, methods, indicator definitions, key findings and limitations in clear language for policymakers and business stakeholders.

• Communicate the scale, distribution and uncertainty of estimated spillover effects using appropriate charts, tables, comparisons and explanatory narratives.

• Translate empirical findings into recommendations for supplier upgrading, workforce development, investment targeting and improvements to the domestic business environment.

• Establish processes for stakeholder validation, management responses, recommendation tracking and periodic review of whether evaluation findings influence policy decisions.

Module 16: Integrated Spillover Evaluation Framework and Capstone Project

• Conduct a diagnostic assessment of an investment-intensive sector or region, identifying foreign investor presence, domestic enterprise capabilities and potential spillover channels.

• Design an evaluation matrix containing objectives, hypotheses, indicators, data requirements, sampling approaches and suitable analytical methods.

• Develop a practical evaluation plan addressing data access, institutional responsibilities, implementation timelines, reporting requirements and methodological risks.

• Present an integrated evaluation framework with evidence-based recommendations for strengthening domestic enterprise participation, productivity growth and the wider benefits of FDI.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: training@upskilldevelopment.com Tel: +254 721 331 808

Training Venue 

The training will be held at our Upskill Training Centre. We also offer training for a group (at a discount of 10% to 50%) at requested location all over the world. The Onsite course fee covers the course tuition, training materials, two break refreshments, buffet lunch, airport transfers, Upskill gift package, and guided tour.

Visa application, travel expenses, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Upskill certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: training@upskilldevelopment.com, +254 721 331 808

Terms of Payment:

Unless otherwise agreed between the two parties’ payment of the course fee should be done 3 working days before commencement of the training so as to enable us to prepare better.