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Working Paper 126 - China’s Trade and FDI in Africa

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  • Mary-Françoise Renard

Abstract

China’s growth and its capacity to move in thirty years from under-development and extreme poverty to an emerging global power and one of the largest exporter of manufactured goods has attracted the attention of many developing countries. China has served as a development model for Africa and an alternative source of trade and finance from Africa’s traditional development partners. The impact of China on African economies has been diverse, depending in part on the sectoral composition of each country’s production. Overall, China’s increased engagement with Africa could generate important gains for African economies. This paper analyzes the different impacts of China on Africa, quantifies the advantages and disadvantages, and policy suggestions necessary to maximize the development impact of China. One overriding consideration is that reaping the full benefits from Chinese trade and investment will require substantial improvements in governance in African economies.

Suggested Citation

  • Mary-Françoise Renard, 2011. "Working Paper 126 - China’s Trade and FDI in Africa," Working Paper Series 297, African Development Bank.
    • Handle: RePEc:adb:adbwps:297
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    References listed on IDEAS

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    Cited by:

    1. Dinkneh Gebre Borojo & Yushi Jiang, 2016. "The Impact of Africa-China Trade Openness on Technology Transfer and Economic Growth for Africa: A Dynamic Panel Data Approach," Annals of Economics and Finance, Society for AEF, vol. 17(2), pages 403-431, November.
    2. Simplice A. Asongu & Paul N. Acha-Anyi, 2020. "A survey on the Washington Consensus and the Beijing Model: reconciling development perspectives," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 67(2), pages 111-129, June.
    3. Kafilah Lola GOLD & Rajah RASIAH & Kian Teng KWEK & Murtala MUHAMMAD, 2020. "Export Determinants of China’s FDI in Africa: Empirical Evidence from Oil/Minerals Exporting African Countries," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 119-133, September.
    4. Kafilah Lola Gold, 2022. "The determinant of Chinese foreign direct investments in oil exporting African countries," Contemporary Economic Policy, Western Economic Association International, vol. 40(3), pages 476-490, July.
    5. Carolyn Chisadza & Manoel Bittencourt, 2016. "Globalisation and Conflict: Evidence from Sub-Saharan Africa," Working Papers 201640, University of Pretoria, Department of Economics.
    6. Adeleke Oladapo Banwo & Jianguo Du & Uchechi Onokala, 2017. "The determinants of location specific choice: small and medium-sized enterprises in developing countries," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 7(1), pages 1-17, December.
    7. Andrew G Ross & Maktoba Omar & Anqi Xu & Samikshya Pandey, 2019. "The impact of institutional quality on Chinese foreign direct investment in Africa," Local Economy, London South Bank University, vol. 34(6), pages 572-588, September.
    8. Daniel Poon, 2014. "China’s Development Trajectory: A Strategic Opening for Industrial Policy in the South," UNCTAD Discussion Papers 218, United Nations Conference on Trade and Development.
    9. World Bank Group, 2015. "Global Economic Prospects, June 2015," World Bank Publications - Books, The World Bank Group, number 21999.
    10. Mr. Paulo Drummond & Miss Estelle X Liu, 2013. "Africa’s Rising Exposure to China: How Large Are Spillovers Through Trade?," IMF Working Papers 2013/250, International Monetary Fund.
    11. Mebratu Seyoum & Renshui Wu & Jihong Lin, 2014. "Foreign Direct Investment and Trade Openness in Sub-Saharan Economies: A Panel Data Granger Causality Analysis," South African Journal of Economics, Economic Society of South Africa, vol. 82(3), pages 402-421, September.

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