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

Author

Listed:
  • Ozawa Terutomo

    (Colorado State University)

  • Bellak Christian

    (Vienna University of Economics and Business)

Abstract

China has emerged as the most proactive partner for Africa's 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 China's growing--yet still nascent--manufacturing 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 Bank's wish will actually come true. China's 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 China's may be transplanted overseas. This article concludes that at the moment, China's 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
    DOI: 10.2202/1524-5861.1764
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    References listed on IDEAS

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    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. Altenburg, Tilman & Chen, Xiao & Lütkenhorst, Wilfried & Staritz, Cornelia & Whitfield, Lindsay, 2020. "Exporting out of China or out of Africa? Automation versus relocation in the global clothing industry," IDOS Discussion Papers 1/2020, German Institute of Development and Sustainability (IDOS).
    3. Deborah Brautigam & Tang Xiaoyang & Ying Xia, 2018. "What Kinds of Chinese ‘Geese’ Are Flying to Africa? Evidence from Chinese Manufacturing Firms," Journal of African Economies, Centre for the Study of African Economies, vol. 27(suppl_1), pages 29-51.
    4. Peter Draper & Andreas Freytag & Sören Scholvin & Luong Thanh Tran, 2016. "Is a ‘Factory Southern Africa’ Feasible?," World Bank Publications - Reports 23788, The World Bank Group.
    5. 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.
    6. Faroque, Anisur R. & Morrish, Sussie C. & Kuivalainen, Olli & Sundqvist, Sanna & Torkkeli, Lasse, 2021. "Microfoundations of network exploration and exploitation capabilities in international opportunity recognition," International Business Review, Elsevier, vol. 30(1).

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