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Learning from China? Manufacturing, investment, and technology transfer in Nigeria

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  • Chen, Yunnan
  • Sun, Irene Yuan
  • Ukaejiofo, Rex Uzonna
  • Xiaoyang, Tang
  • Bräutigam, Deborah

Abstract

The question of how to promote structural transformation is central in fostering sustainable growth and poverty reduction in low-income countries in Africa. Following China’s domestic economic transformation and its growing outward investments in the developing world, we seek to understand how Chinese investment in Africa, particularly in manufacturing, may help to foster industrialization and in turn the structural transformation of African economies. We focus on Chinese investments and partnerships in Nigeria, a salient destination for Chinese manufacturing foreign direct investment in Africa, and examine the potential mechanisms of technology transfer that might catalyze such transformation. We find some small but significant cases of potential technology transfer, particularly through technical partnerships between firms. However, the future potential of such mechanisms will depend on the initiative of Nigerian actors to leverage Chinese investment to their interest.

Suggested Citation

  • Chen, Yunnan & Sun, Irene Yuan & Ukaejiofo, Rex Uzonna & Xiaoyang, Tang & Bräutigam, Deborah, 2016. "Learning from China? Manufacturing, investment, and technology transfer in Nigeria," IFPRI discussion papers 1565, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:1565
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    References listed on IDEAS

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    Cited by:

    1. Kappel, Robert & Pfeiffer, Birte & Reisen, Helmut, 2017. "Compact with Africa: fostering private long-term investment in Africa," IDOS Discussion Papers 13/2017, German Institute of Development and Sustainability (IDOS).
    2. Deborah Brautigam & Tang Xiaoyang & Ying Xia, 2018. "What Kinds of Chinese ‘Geese’ Are Flying to Africa? Evidence from Chinese Manufacturing Firms," Journal of African Economies, Centre for the Study of African Economies, vol. 27(suppl_1), pages 29-51.
    3. Olasehinde, Toba Stephen & Jin, Ye & Qiao, Fangbin & Mao, Shiping, 2023. "Marginal returns on Chinese agricultural technology transfer in Nigeria: Who benefits more?," China Economic Review, Elsevier, vol. 78(C).
    4. Fu, Xiaolan & Buckley, Peter J. & Fu, Xiaoqing Maggie, 2020. "The Growth Impact of Chinese Direct Investment on Host Developing Countries," International Business Review, Elsevier, vol. 29(2).
    5. Yunnan Chen, 2024. "Technology Transfer on the Belt and Road: Pathways for Structural Transformation in Ethiopia’s Standard Gauge Railways," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(3), pages 668-694, June.
    6. Muritala Oke & Oluseyi Oshinfowokan & Olubunmi Okonoda, 2021. "Nigeria-China Trade Relations: Projections for National Growth and Development," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(11), pages 1-77, July.
    7. Eugene Bempong Nyantakyi & Qingwei Meng & Matthew T. Palmer, 2022. "Local Skill Development from China’s Engagement in Africa: Comparative Evidence from the Construction Sector in Ghana," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(1), pages 68-85, March.

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    Keywords

    supply chains; technology transfer; structural dynamics; manufacturing; industrialization; foreign investment; China; Nigeria; Africa; Western Africa; Sub-Saharan Africa; Asia; Eastern Asia;
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