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Will the World Bank's Vision Materialize? Relocating China's Factories to Sub-Saharan Africa, Flying-Geese Style

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  • Ozawa Terutomo

    () (Colorado State University)

  • Bellak Christian

    () (Vienna University of Economics and Business)

Abstract

China has emerged as the most proactive partner for Africas growth by offering economic aid, investing in development projects in resource extraction and infrastructure building, and expanding trade. In this regard, a number of studies have recently explored Chinas growingyet still nascentmanufacturing investments in sub-Saharan Africa, which the World Bank hopes to see further expanded so as to ignite local industrialization. These studies look mainly at the Africa-side (host) conditions. In contrast, this paper stresses China-side (home) factors and examines the institutional issues involved in this hoped-for scheme of industrial transplantation. The central question addressed is whether the World Banks wish will actually come true. Chinas potential in this scenario is assessed in terms of the flying-geese growth model that explains how comparatively disadvantaged industries in such a rapidly catching-up economy as Chinas may be transplanted overseas. This article concludes that at the moment, Chinas capacity to transform the sub-Saharan region into a vibrant manufacturing base via foreign direct investment (FDI) is still underdeveloped and quite limited.

Suggested Citation

  • Ozawa Terutomo & Bellak Christian, 2011. "Will the World Bank's Vision Materialize? Relocating China's Factories to Sub-Saharan Africa, Flying-Geese Style," Global Economy Journal, De Gruyter, vol. 11(3), pages 1-18, September.
  • Handle: RePEc:bpj:glecon:v:11:y:2011:i:3:n:6
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    References listed on IDEAS

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    1. Jing Gu, 2009. "China's Private Enterprises in Africa and the Implications for African Development," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 21(4), pages 570-587, September.
    2. Kojima, Kiyoshi, 1975. "International Trade and Foreign Investment : Substitutes or Complements," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 16(1), pages 1-12, June.
    3. Harry G. Broadman, 2007. "Africa's Silk Road : China and India's New Economic Frontier," World Bank Publications, The World Bank, number 7186.
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    Cited by:

    1. Amendolagine, Vito & Boly, Amadou & Coniglio, Nicola Daniele & Prota, Francesco & Seric, Adnan, 2013. "FDI and Local Linkages in Developing Countries: Evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 50(C), pages 41-56.
    2. Peter Draper & Andreas Freytag & Sören Scholvin & Luong Thanh Tran, 2016. "Is a 'Factory Southern Africa' Feasible? Harnessing Flying Geese to the South African Gateway," CESifo Working Paper Series 5867, CESifo Group Munich.

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