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Boosting economic growth through energy in Africa: the role of Chinese investment and institutional quality

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  • Abdulrasheed Zakari
  • Irfan Khan

Abstract

In 2019, Chinese investment rose to $110 billion across all sectors in Africa. However, there are many criticisms that the Chinese presence is a curse to the development of Africa. Hence, we direct our attention to unravel the truth about these allegations by examining the underlying effect of institutional quality and Chinese investment in Africa on energy consumption (EC) and its impact on economic growth. We applied a panel corrected standard error (PCSE) econometric procedure for a selected 21 sub-Saharan African countries. Our results show that energy consumption promotes economic growth. Similarly, the study revealed that the institutional quality and Chinese investment in Africa were the underlying factors for the positive effect of energy consumption and economic growth. Therefore, our results expand the economic growth literature and inform policymakers of the need to pay attention to bilateral trade and investment with China.

Suggested Citation

  • Abdulrasheed Zakari & Irfan Khan, 2022. "Boosting economic growth through energy in Africa: the role of Chinese investment and institutional quality," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 20(1), pages 1-21, January.
    • Handle: RePEc:taf:jocebs:v:20:y:2022:i:1:p:1-21
    DOI: 10.1080/14765284.2021.1968709
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    Cited by:

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    2. Zahid Zahoor & Muhammad Shahbaz & Samariddin Makhmudov, 2026. "Public-Private Partnerships Investment in Energy-Financial Development Nexus and Role of Natural Resources in China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 17(2), pages 4712-4742, April.
    3. Wen, KanKan & Alessa, Noha & Tawiah, Vincent, 2024. "The impact of Chinese investment on energy independence in Africa," Energy Policy, Elsevier, vol. 192(C).
    4. Abdol Aziz Shahraki & Hossein Mollashahi, 2025. "House building techniques for achieving sustainable development goals," Natural Resources Forum, Blackwell Publishing, vol. 49(2), pages 1859-1879, May.
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    12. Nguyen Thi Thu Ha & Nguyen Thi Thanh Huyen & Tran Thi Mai Hoa & Le Thanh Ha, 2025. "Does circularity mean energy transition and energy security? novel evidence from European countries," Energy & Environment, , vol. 36(8), pages 3821-3859, December.
    13. Li, Guiping & Zhang, Xiaohua & Xiao, Zheng & Liu, Wei & He, Qian, 2023. "Land under cereal production and environmental sustainability: Influence of total natural resources rents in the United States," Resources Policy, Elsevier, vol. 85(PB).
    14. liu, Dong & Tian, Yulin & Son, SangBum, 2023. "Do ICT service exports and energy imports determine natural resource sustainability?," Resources Policy, Elsevier, vol. 85(PB).
    15. Yuan, Jian & Yang, Ranran & Fu, Qiang, 2023. "Aspects of renewable energy influenced by natural resources: How do the stock market and technology play a role?," Resources Policy, Elsevier, vol. 85(PB).
    16. Sun, Wei & Yao, Guohui, 2023. "Impact of mineral resource depletion on energy use: Role of energy extraction, CO2 intensity, and natural resource sustainability," Resources Policy, Elsevier, vol. 86(PB).
    17. Oluwole Nurudeen Omonijo & Yunsheng Zhang, 2026. "Understanding the performance of Chinese high-tech industry and technological innovations on Africa CSR practices," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 28(1), pages 1735-1757, January.
    18. Zhang, Cong & Teng, Wei, 2023. "Natural resources led financing of investment: A prospect of China's provincial data," Resources Policy, Elsevier, vol. 86(PB).
    19. Zhao, Fang & Xu, Yi & Ma, Wanying, 2023. "Geodiversity and natural resource management: The importance of combustible renewables and waste in China," Resources Policy, Elsevier, vol. 85(PB).
    20. Destek, Mehmet Akif & Adedoyin, Festus & Bekun, Festus Victor & Aydin, Sercan, 2023. "Converting a resource curse into a resource blessing: The function of institutional quality with different dimensions," Resources Policy, Elsevier, vol. 80(C).
    21. Kang, Han & Li, Le & Feng, Jin, 2023. "Are natural resources a hindrance to ecological footprint? Mineral rents, energy production, and consumption positions," Resources Policy, Elsevier, vol. 86(PA).
    22. Zakari, Abdulrasheed & Khan, Irfan & Tawiah, Vincent & Alvarado, Rafael & Li, Guo, 2022. "The production and consumption of oil in Africa: The environmental implications," Resources Policy, Elsevier, vol. 78(C).
    23. Niu, Shuhua & Liu, Wenhe & Su, Ying-Yueh & Al-Abyadh, Mohammed Hasan Ali & Muda, Iskandar & Abdul-Samad, Zulkiflee, 2024. "Driving sustainable development: Role of institutional quality and future of China's mineral resource management projects," Resources Policy, Elsevier, vol. 95(C).
    24. Liang, Yunbao & Galiano, Jesus Cantero & Zhou, Hongxia, 2023. "The environmental impact of stock market capitalization and energy transition: Natural resource dynamics and international trade," Utilities Policy, Elsevier, vol. 82(C).

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