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Can Cheetah Beat Tiger? A Comparative Analysis of Chinese Industrial Competitiveness with Sub-Saharan African Countries

Author

Listed:
  • Ehizuelen Michael Mitchell Omoruyi

    (Institute of African Studies, Zhejiang Normal University, China)

Abstract

This paper examines Sub-Saharan Africa’s industrial competitiveness with China, by employing a statistical methodology for studying competitiveness based on relative unit labour costs. The patterns of bilateral trade between China and SSA, as well as investment and financial aspects of the relationships are examined. The findings show that SSA’s relative unit cost levels have generally been higher than that of China. However, in the 2000s, the levels dropped as China’s wages increased faster than its productivity, while the reverse is true for SSA countries in the study sample. The study shows that SSA countries are unlikely to be competitive in labour-intensive manufacturing because of high relative unit labour costs and weaknesses in their business climate.

Suggested Citation

  • Ehizuelen Michael Mitchell Omoruyi, 2016. "Can Cheetah Beat Tiger? A Comparative Analysis of Chinese Industrial Competitiveness with Sub-Saharan African Countries," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 39(3-4), pages 41-76.
    • Handle: RePEc:ris:badest:0800
    as

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    References listed on IDEAS

    as
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    2. Simplice A. Asongu & Gilbert A.A. Aminkeng, 2013. "The economic consequences of China--Africa relations: debunking myths in the debate," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 11(4), pages 261-277, November.
    3. Asian Development Bank (ADB) & Asian Development Bank (ADB) & Asian Development Bank (ADB) & Asian Development Bank (ADB), 2015. "K-12 Transitions: Approaches and Lessons Learned," ADB Reports ABF157758-2, Asian Development Bank (ADB).
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    5. Eifert, Benn & Gelb, Alan & Ramachandran, Vijaya, 2008. "The Cost of Doing Business in Africa: Evidence from Enterprise Survey Data," World Development, Elsevier, vol. 36(9), pages 1531-1546, September.
    6. Janet Ceglowski & Stephen Golub, 2007. "Just How Low are China's Labour Costs?," The World Economy, Wiley Blackwell, vol. 30(4), pages 597-617, April.
    7. Paul De Grauwe & Romain Houssa & Giulia Piccillo, 2012. "African trade dynamics: is China a different trading partner?," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 10(1), pages 15-45, August.
    8. Mr. Derek Anderson & Mr. Jorge I Canales Kriljenko & Mr. Paulo Drummond & Pedro Espaillat & Mr. Dirk V Muir, 2015. "Spillovers from China onto Sub-Saharan Africa: Insights from the Flexible System of Global Models (FSGM)," IMF Working Papers 2015/221, International Monetary Fund.
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    10. Stephen S. Golub, 2012. "Entrepôt Trade and Smuggling in West Africa: Benin, Togo and Nigeria," The World Economy, Wiley Blackwell, vol. 35(9), pages 1139-1161, September.
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    • A10 - General Economics and Teaching - - General Economics - - - General

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