IDEAS home Printed from https://ideas.repec.org/a/mth/bmsmti/v16y2025i2p188-210.html

The Dynamics of Chinese FDI in Africa: A Case Study Algeria

Author

Listed:
  • Mohammed Salah Abdessultane
  • Youlin Zhao
  • Bakir Hami

Abstract

This study employs a Seasonal Autoregressive Integrated Moving Average with Exogenous Variables (SARIMAX) model to examine the determinants, temporal patterns, and projected trajectories of Chinese Foreign Direct Investment (FDI) flows to Algeria over the period 2003-2021. Chinese capital investments have emerged as a critical factor in Algeria's economic transformation, with concentrated activity in construction, energy extraction, and infrastructure development sectors. Utilizing quarterly time-series data derived from national statistical agencies and international financial institutions, this research models the dynamic relationship between Chinese FDI inflows and key macroeconomic determinants, including international oil price volatility, exchange rate fluctuations, and bilateral trade volumes. The empirical analysis incorporates advanced econometric techniques to capture seasonal variations and external shocks affecting investment patterns. Through ex-ante forecasting methodologies, the study projects future FDI trajectories while identifying primary explanatory variables that influence investment decisions. The econometric findings provide empirical evidence for policymakers seeking to develop strategic frameworks for attracting sustainable and sectorally diversified foreign investment portfolios. The research contributes to the broader literature on South-South investment flows and offers practical insights for enhancing bilateral economic cooperation mechanisms between China and Algeria.

Suggested Citation

  • Mohammed Salah Abdessultane & Youlin Zhao & Bakir Hami, 2025. "The Dynamics of Chinese FDI in Africa: A Case Study Algeria," Business Management and Strategy, Macrothink Institute, vol. 16(2), pages 188-210, December.
    • Handle: RePEc:mth:bmsmti:v:16:y:2025:i:2:p:188-210
    as

    Download full text from publisher

    File URL: https://www.macrothink.org/journal/index.php/bms/article/download/22857/17659
    Download Restriction: no
    File URL: https://www.macrothink.org/journal/index.php/bms/article/view/22857
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Auty, Richard M., 1994. "Industrial policy reform in six large newly industrializing countries: The resource curse thesis," World Development, Elsevier, vol. 22(1), pages 11-26, January.
    2. Daniel N Mlambo & Victor H Mlambo & Mandla A Mubecua, 2018. "The Rise of Chinese Investments in Africa: For Whose Benefit?," Journal of Economics and Behavioral Studies, AMH International, vol. 10(4), pages 81-87.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hailu, Degol & Kipgen, Chinpihoi, 2017. "The Extractives Dependence Index (EDI)," Resources Policy, Elsevier, vol. 51(C), pages 251-264.
    2. Awijen, Haithem & Ben Zaied, Younes & Ben Jabeur, Sami, 2025. "Mobilizing FDI in natural resources in the post-COP28 era: Spatial drivers, natural capital, and sustainability dynamics," Resources Policy, Elsevier, vol. 107(C).
    3. Frank Iyekoretin Ogbeide & Hilary Kanwanye & Sunday Kadiri, 2016. "Revisiting the Determinants of Unemployment in Nigeria: Do Resource Dependence and Financial Development Matter?," African Development Review, African Development Bank, vol. 28(4), pages 430-443, December.
    4. Bin Amin, Sakib & Taghizadeh-Hesary, Farhad & Khan, Farhan & Manal Rahman, Faria, 2024. "Does technology have a lead or lag role in economic growth? The case of selected resource-rich and resource-scarce countries," Resources Policy, Elsevier, vol. 89(C).
    5. Ishak, Phoebe W. & Gradstein, Mark, 2021. "We Don't Need No Education: The Effect of Persistent Income Shocks on Human Capital," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242368, Verein für Socialpolitik / German Economic Association.
    6. repec:rnp:rpaper:repkz1 is not listed on IDEAS
    7. Fullerton, Thomas M., Jr. & Sawyer, W. Charles & Sprinkle, Richard L., 2010. "Intra-industry trade in Latin America and the Caribbean," MPRA Paper 34854, University Library of Munich, Germany, revised 2011.
    8. Ackah-Baidoo, Abigail, 2012. "Enclave development and ‘offshore corporate social responsibility’: Implications for oil-rich sub-Saharan Africa," Resources Policy, Elsevier, vol. 37(2), pages 152-159.
    9. Wang, Rong & Zameer, Hashim & Feng, Yue & Jiao, Zhilun & Xu, Li & Gedikli, Ayfer, 2019. "Revisiting Chinese resource curse hypothesis based on spatial spillover effect: A fresh evidence," Resources Policy, Elsevier, vol. 64(C).
    10. Siphambe, H. K., 2007. "Growth and employment dynamics in Botswana : a case study of policy coherence," ILO Working Papers 994027033402676, International Labour Organization.
    11. Zhang, HongWei & Ben, Fang & Qin, Meng, 2024. "Mineral resources, tourism, human capital, and carbon neutrality: A path towards balanced and sustainable development," Resources Policy, Elsevier, vol. 90(C).
    12. Bryan K. Ritchie, 2010. "Systemic Vulnerability and Sustainable Economic Growth," Books, Edward Elgar Publishing, number 13731, June.
    13. Davis, Graham A., 1995. "Learning to love the Dutch disease: Evidence from the mineral economies," World Development, Elsevier, vol. 23(10), pages 1765-1779, October.
    14. Amin Karimu & George Adu & George Marbuah & Justice Tei Mensah & Franklin Amuakwa-Mensah, 2017. "Natural Resource Revenues and Public Investment in Resource-rich Economies in Sub-Saharan Africa," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 107-130, November.
    15. Sun, Xiaohua & Ren, Junlin & Wang, Yun, 2022. "The impact of resource taxation on resource curse: Evidence from Chinese resource tax policy," Resources Policy, Elsevier, vol. 78(C).
    16. Al Mamun, Md & Sohag, Kazi & Hassan, M. Kabir, 2017. "Governance, resources and growth," Economic Modelling, Elsevier, vol. 63(C), pages 238-261.
    17. Seyfettin Erdo an & Emrah smail evik & Ayfer Gedikli, 2020. "Healthcare Expenditures Channel of Natural Resource Curse: The Case of Gulf Cooperation Council Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 285-293.
    18. Zihan Hu & Min Wu & Dan Yang & Tao Luo & Yihao Tian, 2024. "How Resource-Exhausted Cities Get Out of the Innovation Bottom? Evidence from China," Land, MDPI, vol. 13(8), pages 1-22, July.
    19. Giovanni Covi, 2014. "Dutch disease and sustainability of the Russian political economy," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2014(2), pages 75-110.
    20. Elissaios Papyrakis & Reyer Gerlagh, 2005. "Natural Resources, Innovation, and Growth," DEGIT Conference Papers c010_054, DEGIT, Dynamics, Economic Growth, and International Trade.
    21. Kumar, Nitish & Shaurav, Kumar, 2025. "Do disaggregated natural resources foster financial development? Evidence from linear and non-linear approaches," Resources Policy, Elsevier, vol. 103(C).

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mth:bmsmti:v:16:y:2025:i:2:p:188-210. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Technical Support Office The email address of this maintainer does not seem to be valid anymore. Please ask Technical Support Office to update the entry or send us the correct address (email available below). General contact details of provider: http://www.macrothink.org/journal/index.php/bms .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.