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The Economic Consequences of China-Africa Relations: Debunking Myths in the Debate

  • Asongu, Simplice A
  • Aminkeng, Gilbert A. A

This study dissects with great acuteness some of the big questions on China-Africa relations in order to debunk burgeoning myths surrounding the nexus. It reviews a wealth of recent literature and presents the debate in three schools of thought. No substantial empirical evidence is found to back-up sinister prophesies of coming catastrophe from critics of the direction of China-Africa relations. In the mean, the relationship from an economic standpoint is promising and encouraging but more needs to be done regarding multilateral relations, improvement of institutions and sustainability of resources management. A number of positive signs suggest that China is heading toward the direction which would provide openings for a multipolar dialogue. While benefiting in the short-run, African governments have the capacity to tailor this relationship and address some socio-economic matters arising that may negatively affect the nexus in the long-term. Policy implications are discussed.

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File URL: https://mpra.ub.uni-muenchen.de/48468/1/MPRA_paper_48468.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 48468.

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Date of creation: 20 Jul 2013
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Handle: RePEc:pra:mprapa:48468
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  1. Simplice A., Asongu, 2011. "Investment and inequality in Africa: which financial channels are good for the poor?," MPRA Paper 34990, University Library of Munich, Germany.
  2. Bamidele Adekunle & Ciliaka M. W. Gitau, 2013. "Illusion or Reality: Understanding the Trade Flow Between China and Sub-Saharan Africa," Journal of African Business, Taylor & Francis Journals, vol. 14(2), pages 117-126, August.
  3. Yiping Zhu, 2010. "Trade, capital flows and external balance: is China unique in two hundred years of globalisation?," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 8(1), pages 1-22.
  4. S. Mahendra Dev, 2008. "India," Chapters, in: Handbook on the South Asian Economies, chapter 1 Edward Elgar.
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  7. Asongu Simplice, 2011. "Government Quality Determinants of Stock Market Performance in African Countries," Working Papers 11/019, African Governance and Development Institute..
  8. Liming Wang & Jinghai Zheng, 2010. "China and the changing landscape of the world economy," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 8(3), pages 203-214.
  9. Jonathan Munemo, 2013. "Examining Imports of Capital Goods From China as a Channel for Technology Transfer and Growth in Sub-Saharan Africa," Journal of African Business, Taylor & Francis Journals, vol. 14(2), pages 106-116, August.
  10. Daron Acemoglu, 2007. "Oligarchic Versus Democratic Societies," Carlo Alberto Notebooks 47, Collegio Carlo Alberto.
  11. Asongu Simplice, 2013. "How do financial reforms affect inequality through financial sector competition? Evidence from Africa," Working Papers 13/011, African Governance and Development Institute..
  12. DiadiƩ Diaw & Albert Lessoua, 2013. "Natural Resources Exports, Diversification and Economic Growth of CEMAC Countries: On the Impact of Trade with China," African Development Review, African Development Bank, vol. 25(2), pages 189-202.
  13. Yingqi Wei & Chengang Wang, 2009. "Understanding China's international economic integration," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 7(4), pages 401-408.
  14. Raphael Kaplinsky & Mike Morris, 2009. "Chinese FDI in Sub-Saharan Africa: Engaging with Large Dragons," The European Journal of Development Research, Palgrave Macmillan, vol. 21(4), pages 551-569, September.
  15. Mario Biggeri & Marco Sanfilippo, 2009. "Understanding China's move into Africa: an empirical analysis," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 7(1), pages 31-54.
  16. Jenkins, Rhys & Edwards, Chris, 2006. "The economic impacts of China and India on sub-Saharan Africa: Trends and prospects," Journal of Asian Economics, Elsevier, vol. 17(2), pages 207-225, April.
  17. Mesquita Moreira, Mauricio, 2007. "Fear of China: Is There a Future for Manufacturing in Latin America?," World Development, Elsevier, vol. 35(3), pages 355-376, March.
  18. Andrea Goldstein & Nicolas Pinaud & Helmut Reisen, 2006. "The Rise of China and India: What's in it for Africa?," OECD Development Centre Policy Insights 19, OECD Publishing.
  19. Baocheng Ji, 2010. "China's economic recovery and the China model," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 8(3), pages 215-226.
  20. Kaplinsky, Raphael & Messner, Dirk, 2008. "Introduction: The Impact of Asian Drivers on the Developing World," World Development, Elsevier, vol. 36(2), pages 197-209, February.
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