IDEAS home Printed from https://ideas.repec.org/p/adb/adbwps/295.html
   My bibliography  Save this paper

Working Paper 129 - China’s Engagement and Aid Effectiveness in Africa

Author

Listed:
  • Jean Claude Berthélemy

Abstract

Chinese aid, finance, trade and investment flows to Africa are growing fast. We consider the consequences of these trends using a quantified framework. Very often, adequate data are simply non-available, but we find that existing data provide useful insights on what is ongoing. We first discuss the allocation of Chinese aid, using data on turnover of economic cooperation, and we find it is at least partially comparable to other bilateral aid. We also consider the potential issue created by re-indebtedness of African countries borrowing to China. Second, we show, through studying African import patterns, that the growing importation of Chinese products in Africa can be interpreted as trade creation instead of trade diversion. Hence it has positive rather than negative impact on African economies. Third, we study the influence of Chinese engagement on economic diversification. We show that the usual “Dutch disease” argument is debatable. We find that none of the various dimensions of China engagement has had so far a significant impact, positive or negative, on African economic diversification. For the future, the evolving preferential trade regime offered by China, and its policy of creating special economic zones, could help tip the balance on the positive side.

Suggested Citation

  • Jean Claude Berthélemy, 2011. "Working Paper 129 - China’s Engagement and Aid Effectiveness in Africa," Working Paper Series 295, African Development Bank.
  • Handle: RePEc:adb:adbwps:295
    as

    Download full text from publisher

    File URL: https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/Working%20129.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Paul Collier & Anthony J. Venables, 2007. "Rethinking Trade Preferences: How Africa Can Diversify its Exports," The World Economy, Wiley Blackwell, vol. 30(8), pages 1326-1345, August.
    2. Helmut Reisen & Sokhna Ndoye, 2008. "Prudent versus Imprudent Lending to Africa: From debt relief to emerging lenders," OECD Development Centre Working Papers 268, OECD Publishing.
    3. Henley, John & Kratzsch, Stefan & Kulur, Mithat & Tandogan, Tamer, 2008. "Foreign Direct Investment from China, India and South Africa in Sub-Saharan Africa: A New or Old Phenomenon?," WIDER Working Paper Series 024, World Institute for Development Economic Research (UNU-WIDER).
    4. Peter Kragelund, 2008. "The Return of Non-DAC Donors to Africa: New Prospects for African Development?," Development Policy Review, Overseas Development Institute, vol. 26(5), pages 555-584, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    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:adb:adbwps:295. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Adeleke Oluwole Salami). General contact details of provider: http://edirc.repec.org/data/afdbgci.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.