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The Impact of Africa-China Trade Openness on Technology Transfer and Economic Growth for Africa: A Dynamic Panel Data Approach

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  • Dinkneh Gebre Borojo

    (School of Economics and Management, Southwest Jiaotong University)

  • Yushi Jiang

    (School of Economics and Management, Southwest Jiaotong University)

Abstract

Using two-step system GMM estimator we analyze the impact of Africa-China trade openness on TFP and economic growth for 38 African countries for the periods 1995-2013 after controlling for edogeneity. The findings of this study reveal that Africa-China trade openness has robust positive effect on GDP growth of African countries. When Africa-China trade openness is interacted with the institutional quality and human capital of Africa, its effect on TFP is positive and significant. Hence, it needs strong domestic absorptive capacity of Africa to reap technology improvement effect of trade with China. These findings, therefore, provide evidence that Africa-China trade openness is an important contributor of economic growth for Africa.

Suggested Citation

  • Dinkneh Gebre Borojo & Yushi Jiang, 2016. "The Impact of Africa-China Trade Openness on Technology Transfer and Economic Growth for Africa: A Dynamic Panel Data Approach," Annals of Economics and Finance, Society for AEF, vol. 17(2), pages 403-431, November.
    • Handle: RePEc:cuf:journl:y:2016:v:17:i:2:borojo
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    More about this item

    Keywords

    Trade Openness; Technology Transfer; Economic Growth; Africa-China; system GMM;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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