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The Impact of China's Economic Activities in Africa on Economic Growth of African Countries

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  • MITCHELL OMORUYI, MICHALE EHIZUELEN

    (Institute of African Studies, Zhejiang Normal University,)

Abstract

Narrowing development gaps has been a critical issue globally. This paper aims to investigate the role of Chinese FDI, trade and aid in narrowing development gaps with respect to the growth performance of economies in that region. Using a Solow-type growth model and panel data for the period 1991 to 2011, this paper reveals that African economies that export natural resources have benefited from positive terms-of-trade effects. In addition, there is evidence for displacement effects of African firms due to competition from China. Chinese foreign investment and aid in Africa do not seem to have an impact on growth.

Suggested Citation

  • Mitchell Omoruyi, Michale Ehizuelen, 2015. "The Impact of China's Economic Activities in Africa on Economic Growth of African Countries," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 38(4), pages 47-90, December.
  • Handle: RePEc:ris:badest:0790
    as

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    More about this item

    Keywords

    Africa; Aid; China; Economic Growth; FDI; Trade; South South Cooperation;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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