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Infrastructure as an Internationally Tradable Good: The African–Chinese Nexus

Author

Listed:
  • Hern Hern Chua

    (M.A. Candidate in East Asian Studies, Stanford University, USA)

  • Henry Wan

    (Economic Department, Cornell University, USA)

Abstract

As a government-supplied public good, infrastructure facilitates economic development by promoting marketization. Despite an infrastructure deficit in African countries, some governments lack the necessary finance and/or political will to provide this public good. Africa's demand for infrastructure forms the basis to trade with resource-deficient China. This relieves Africa from dependence on the "aid-fatigued" West, and expands the market for Chinese goods and services. Expediency of Chinese policy may indirectly affect development of indigenous governance and firms. Nonetheless, such trade provides sovereign African states an alternative to conditional aid, and can be accepted or rejected with free will.

Suggested Citation

  • Hern Hern Chua & Henry Wan, 2014. "Infrastructure as an Internationally Tradable Good: The African–Chinese Nexus," China Economic Policy Review (CEPR), World Scientific Publishing Co. Pte. Ltd., vol. 3(02), pages 1-16.
    • Handle: RePEc:wsi:ceprxx:v:03:y:2014:i:02:n:s1793969014500071
    DOI: 10.1142/S1793969014500071
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    References listed on IDEAS

    as
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    2. Huang,Yasheng, 2008. "Capitalism with Chinese Characteristics," Cambridge Books, Cambridge University Press, number 9780521898102.
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