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Economic transformation in Africa: What is the role of Chinese firms?

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  • Linda Calabrese
  • Xiaoyang Tang

Abstract

African countries face an economic transformation gap. Given the large and growing Chinese presence on the African continent, a fundamental question is whether Chinese firms contribute to, or hinder, economic transformation in Africa. This article conducts a scoping review of over one hundred sources, examining the pathways through which Chinese firms can affect economic transformation. On balance, the literature points to a positive role of Chinese firms. Africa–China trade leads to mixed results, while Chinese investment and infrastructure construction are found to contribute positively to transformation. Chinese firms are also found to support capacity building, spillovers and innovation in African countries.

Suggested Citation

  • 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.
    • Handle: RePEc:wly:jintdv:v:35:y:2023:i:1:p:43-64
    DOI: 10.1002/jid.3664
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    1. Oya, Carlos & Schaefer, Florian, 2023. "Do Chinese firms in Africa pay lower wages? A comparative analysis of manufacturing and construction firms in Angola and Ethiopia," World Development, Elsevier, vol. 168(C).

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