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Heterogeneity and Drivers of Chinese Manufacturing FDI in Africa: Evidence From Angola and Ethiopia

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  • Weiwei Chen

Abstract

This article examines the heterogeneity and drivers of Chinese manufacturing foreign direct investment (FDI) in Africa through a comparative analysis of Angola and Ethiopia. Drawing on 8 years of fieldwork (2015–2023), it develops a typology distinguishing market‐embedded firms from global production network (GPN)‐integrated firms, linking firm characteristics to host‐country institutional and policy contexts. This relational–institutional approach addresses limitations in conventional FDI frameworks that overlook variation within similar ownership categories and the influence of local institutional environments. The analysis shows how firm strategies, ownership structures and integration into global or local markets interact with sectoral conditions and industrial policies to shape divergent investment trajectories. Ethiopia's structured, export‐oriented strategy has attracted GPN‐integrated light manufacturers, while Angola's post‐war, market‐driven environment has favoured domestically oriented and diaspora‐led ‘translocal’ enterprises. By integrating firm‐level diversity with host‐country contexts, the article contributes to debates in FDI, GPN and Global China scholarship, offering insights for targeted industrial policies that maximise developmental outcomes.

Suggested Citation

  • Weiwei Chen, 2026. "Heterogeneity and Drivers of Chinese Manufacturing FDI in Africa: Evidence From Angola and Ethiopia," Journal of International Development, John Wiley & Sons, Ltd., vol. 38(1), pages 174-191, January.
    • Handle: RePEc:wly:jintdv:v:38:y:2026:i:1:p:174-191
    DOI: 10.1002/jid.70038
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