The Rise of China in Sub-Saharan Africa: its Ambiguous Economic Impacts
AbstractThe paper analyses the economic relationships between China and Sub-Saharan African countries, including original contractual relationships that link exports from Sub-Saharan Africa to China and investment by Chinese firms in Sub-Saharan Africa. Unlike the 'traditional' partners of Sub-Saharan African economies (European countries, USA), these relations inextricably combine trade, aid and investment, which may create 'lock-in' effects. China's trade and investment focus on the commodities that are produced by African countries, which are crucial inputs in China's growth, with the risk of a growing dependence of African economies on the exports of raw materials and the negative effects that are associated with such dependence, especially in oil-exporting countries. Chinese investment, however, increasingly involves other sectors, such as the manufacturing sector. In addition, Chinese investment and aid have positive effects, such as the improvement of infrastructure, the lack of which being one of the key factors of the stagnation of African economies. The rise of China in Sub-Saharan Africa also implies significant additional resources and a welcome increase in the number of 'players'. The article thus shows the ambivalence of the impacts of China, which moreover substantially vary according to countries' export structure and the nature of their political institutions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by HAL in its series Post-Print with number halshs-00636022.
Date of creation: 14 Sep 2011
Date of revision:
Publication status: Published - Presented, 4ème Congrès du Réseau Asie et Pacifique (CNRS), 2011, Paris, France
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00636022/en/
Contact details of provider:
Web page: http://hal.archives-ouvertes.fr/
Sub-Saharan Africa; China; trade; investment; aid;
This paper has been announced in the following NEP Reports:
- NEP-AFR-2011-11-07 (Africa)
- NEP-ALL-2011-11-07 (All new papers)
- NEP-INT-2011-11-07 (International Trade)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Barry Eichengreen & Donghyun Park & Kwanho Shin, 2012.
"When Fast-Growing Economies Slow Down: International Evidence and Implications for China,"
Asian Economic Papers,
MIT Press, vol. 11(1), pages 42-87, February.
- Barry Eichengreen & Donghyun Park & Kwanho Shin, 2011. "When Fast Growing Economies Slow Down: International Evidence and Implications for China," NBER Working Papers 16919, National Bureau of Economic Research, Inc.
- David Hummels & Georg Schaur, 2012.
"Time as a Trade Barrier,"
NBER Working Papers
17758, National Bureau of Economic Research, Inc.
- Deborah Brautigam & Thomas Farole & Tang Xiaoyang, 2010.
"China’s Investment in African Special Economic Zones : Prospects, Challenges, and Opportunities,"
World Bank Other Operational Studies
10202, The World Bank.
- Farole, Thomas & Brautigam, Deborah & Xiaoyang, Tang, 2010. "China’s Investment in African Special Economic Zones: Prospects, Challenges, and Opportunities," World Bank - Economic Premise, The World Bank, issue 5, pages 1-6, March.
- Milan Brahmbhatt & Otaviano Canuto, 2010. "Natural Resources and Development Strategy after the Crisis," World Bank Other Operational Studies 10212, The World Bank.
- Raphael Kaplinsky & Mike Morris, 2009. "Chinese FDI in Sub-Saharan Africa: Engaging with Large Dragons," The European Journal of Development Research, Palgrave Macmillan, vol. 21(4), pages 551-569, September.
- Paul Cashin & C. John McDermott, 2001.
"The Long-Run Behavior of Commodity Prices: Small Trends and Big Variability,"
IMF Working Papers
01/68, International Monetary Fund.
- Paul Cashin & C. John McCDermott, 2002. "The Long-Run Behavior of Commodity Prices: Small Trends and Big Variability," IMF Staff Papers, Palgrave Macmillan, vol. 49(2), pages 2.
- Acemoglu, Daron, 2003.
"Why not a political Coase theorem? Social conflict, commitment, and politics,"
Journal of Comparative Economics,
Elsevier, vol. 31(4), pages 620-652, December.
- Daron Acemoglu, 2002. "Why Not a Political Coase Theorem? Social Conflict, Commitment and Politics," NBER Working Papers 9377, National Bureau of Economic Research, Inc.
- Brahmbhatt, Milan & Canuto, Otaviano, 2010. "Natural Resources and Development Strategy after the Crisis," World Bank - Economic Premise, The World Bank, issue 1, pages 1-7, February.
- Halvor Mehlum & Karl Ove Moene & Ragnar Torvik, 2005.
"Cursed by resources or institutions?,"
Working Paper Series
5705, Department of Economics, Norwegian University of Science and Technology.
- Peter Kragelund, 2009. "Part of the Disease Or Part of the Cure? Chinese Investments in the Zambian Mining and Construction Sectors," The European Journal of Development Research, Palgrave Macmillan, vol. 21(4), pages 644-661, September.
- Baffes, John, 2007.
"Oil spills on other commodities,"
Policy Research Working Paper Series
4333, The World Bank.
- Montfort Mlachila & Misa Takebe, 2011. "FDI from BRICs to LICs: Emerging Growth Driver?," IMF Working Papers 11/178, International Monetary Fund.
- John T Cuddington & Daniel Jerrett, 2008. "Super Cycles in Real Metals Prices?," IMF Staff Papers, Palgrave Macmillan, vol. 55(4), pages 541-565, December.
- Arbache, Jorge Saba & Page, John, 2007. "Patterns of long term growth in Sub-Saharan Africa," Policy Research Working Paper Series 4398, The World Bank.
- Kaplinsky, Raphael & Morris, Mike, 2008. "Do the Asian Drivers Undermine Export-oriented Industrialization in SSA," World Development, Elsevier, vol. 36(2), pages 254-273, February.
- Blattman, Christopher & Hwang, Jason & Williamson, Jeffrey G., 2007. "Winners and losers in the commodity lottery: The impact of terms of trade growth and volatility in the Periphery 1870-1939," Journal of Development Economics, Elsevier, vol. 82(1), pages 156-179, January.
- Milan Brahmbhatt & Otaviano Canuto, 2010. "Natural Resources and Development Strategy after the Crisis," World Bank Other Operational Studies 11097, The World Bank.
- William Easterly, 2007. "Was Development Assistance a Mistake?," American Economic Review, American Economic Association, vol. 97(2), pages 328-332, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).
If references are entirely missing, you can add them using this form.