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What Kinds of Chinese ‘Geese’ Are Flying to Africa? Evidence from Chinese Manufacturing Firms

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  • Deborah Brautigam
  • Tang Xiaoyang
  • Ying Xia

Abstract

This paper provides a preliminary analysis of the nature of Chinese manufacturing investments in Africa, focusing predominantly on four countries – Ethiopia, Ghana, Nigeria, and Tanzania – but also including examples as illustrations from other countries, when appropriate. Drawing on fieldwork conducted between 2014 and 2015, the paper explores the varieties of existing Chinese manufacturing investment and the sectors into which Chinese companies are investing. We demonstrate in this paper that Chinese manufacturing investment in Africa is indeed expanding rapidly, yet the official data on investment approvals, both in China and in African countries, significantly overstates the actual number of investments in operation. Several investors do fit the model of Akamatsu’s ‘flying geese’: large firms seeking new locations for production as part of global networks and value chains. However, we also identified three other kinds of ‘geese’: large, strategic, local market-seeking geese; raw material-seeking geese; and small geese travelling together in flocks. The different kinds of firms offer different kinds of development opportunities and challenges for structural transformation in Africa.

Suggested Citation

  • Deborah Brautigam & Tang Xiaoyang & Ying Xia, 2018. "What Kinds of Chinese ‘Geese’ Are Flying to Africa? Evidence from Chinese Manufacturing Firms," Journal of African Economies, Centre for the Study of African Economies, vol. 27(suppl_1), pages 29-51.
    • Handle: RePEc:oup:jafrec:v:27:y:2018:i:suppl_1:p:i29-i51.
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    References listed on IDEAS

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    Cited by:

    1. Coletta Frenzel Baudisch, 2019. "Chinese Capital Flows to African Economies and Real Bilateral Exchange Rates," MAGKS Papers on Economics 201910, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    2. Alice Nicole Sindzingre, 2021. "Economic Relationships Between Sub-Saharan Africa and China: An Alternative Theoretical and Policy Paradigm?," Post-Print halshs-03625159, HAL.
    3. Savin, Ivan & Marson, Marta & Sutormina, Marina, 2020. "How different aid flows affect different trade flows: Evidence from Africa and its largest donors," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 119-136.
    4. Shi, Buchao & Huang, Liangxiong & Wei, Shengmin & Geng, Xinyue, 2022. "Overseas industrial parks and China's outward foreign direct investment," Journal of Asian Economics, Elsevier, vol. 83(C).
    5. Abodohoui, Alexis & Su, Zhan, 2020. "Influence of Chinese managerial soft power on African skills development," International Business Review, Elsevier, vol. 29(5).
    6. Minh Tam Bui & Rumi Miura & Masami Saito & Yusuke Shibata & Keiichiro Suenaga, 2022. "Fragmented Flying Geese (FFG) and Intra-Regional Agglomeration: Towards a Model Explaining Location Shifting of Japanese Multinational Corporations and the Electric Value Chains of ASEAN Economies," Economies, MDPI, vol. 10(10), pages 1-30, September.
    7. Linda Calabrese & Xiaoyang Tang, 2023. "Economic transformation in Africa: What is the role of Chinese firms?," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(1), pages 43-64, January.
    8. Yan Chen & Ruirui Zhai & Kevin H. Zhang, 2020. "Natural Resources and Foreign Direct Investment in Africa: Evidence from Chinese Firms," Sustainability, MDPI, vol. 12(22), pages 1-18, November.
    9. Altenburg, Tilman & Chen, Xiao & Lütkenhorst, Wilfried & Staritz, Cornelia & Whitfield, Lindsay, 2020. "Exporting out of China or out of Africa? Automation versus relocation in the global clothing industry," IDOS Discussion Papers 1/2020, German Institute of Development and Sustainability (IDOS).

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