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Foreign Direct Investment In Africa: Securing Chinese Investment For Lasting Development, The Case Of West Africa

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  • Paulin Houanye
  • Sibao Shen

Abstract

At the end of the 20th century, when investors were actively seeking a favorable and secure place for their capital investment, the African continent rarely crossed their minds. Recent misgivings experienced by financial markets around the world and the increased demand of natural supplies forced investors to focus on Africa. This circumstance, for over a decade, has put all Africa, including both developed and industrialized countries in an embarrassing position with very low foreign investment. It is not possible to discuss Africa’s development without referring to the current Chinese investment in Africa. In the past twenty years, China’s interest in Africa has grown significantly. This has simultaneously aroused intense debates within the international community because it has the ambition to set up long-term partnerships with African countries. This new state of affairs will inevitably create legal protection problems for the interests of each party. This article examined the impact of China’s investment on African countries development. We examine how Chinese investors face challenges in Africa and what legal protection the host country provides to the investors to secure their profit and at the same time protect their own interest.

Suggested Citation

  • Paulin Houanye & Sibao Shen, 2012. "Foreign Direct Investment In Africa: Securing Chinese Investment For Lasting Development, The Case Of West Africa," Review of Business and Finance Studies, The Institute for Business and Finance Research, vol. 3(2), pages 103-117.
  • Handle: RePEc:ibf:rbfstu:v:3:y:2012:i:2:p:103-117
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    References listed on IDEAS

    as
    1. Reinhart, Carmen & Rogoff, Kenneth, 2002. "FDI to Africa: The role of price stability and currency instability," MPRA Paper 13872, University Library of Munich, Germany.
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    More about this item

    Keywords

    Foreign Direct Investment; Foreign Protection of International Investment; Developing Countries and Regional Integration;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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