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China's Impact on Africa - the Role of Trade, FDI and Aid

  • Busse, Matthias
  • Erdogan, Ceren
  • Muehlen, Henning

We investigate the impact of Chinese activities in sub-Saharan African countries with respect to the growth performance of economies in that region. Using a Solow-type growth model and panel data for the period 1991 to 2011, we find that African economies that export natural resources have benefited from positive terms-of-trade effects. In addition, there is evidence for displacement effects of African firms due to competition from China. Chinese foreign investment and aid in Africa does not have an impact on growth.

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Paper provided by Institut fuer Entwicklungsforschung und Entwicklungspolitik, Ruhr-Universitaet Bochum in its series IEE Working Papers with number 206.

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Length: 31 pages
Date of creation: 2014
Date of revision:
Handle: RePEc:bom:ieewps:206
Contact details of provider: Postal: Institute of Development Research and Development Policy, Ruhr University Bochum, Universitaetsstr. 150, D-44801 Bochum, Germany
Phone: +49.234.32-22418
Fax: +49.234.3214-294
Web page: http://www.development-research.org/
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