Does China's Trade Expansion Help African Development? - A South-South Trade Model Approach
AbstractWith the aim to explain the explosive growth of trade between China and Africa, especially the impacts of China's exportation on African countries, a simple South-South trade model is constructed to formulate the idea that for a technologically backward country to improve its production capability, when there exists nontrivial substitution effects, it is better to import from a South country which has superior technology, than from a North country with enormous technological advance. Then the Comtrade panel data are used to assess the impacts of imports from China (in comparison with those from the USA and France) on Sub-Saharan African manufactured exports (as proxies of their production performances). The results confirm the inference drawn from the model.
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Bibliographic InfoPaper provided by CERDI in its series Working Papers with number 201038.
Date of creation: 2010
Date of revision:
South-South trade; impact of Chinese exportation on Africa; technology spillover effects; intermediate goods; substitution effects.;
Find related papers by JEL classification:
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
This paper has been announced in the following NEP Reports:
- NEP-AFR-2011-01-03 (Africa)
- NEP-ALL-2011-01-03 (All new papers)
- NEP-INT-2011-01-03 (International Trade)
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