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Impact of Economic and Trade Expansion of China on Employment and Household Welfare in Burkina Faso: A Computable General Equilibrium Analysis

Author

Listed:
  • Boureima Sawadogo

    (Universit Ouaga II, Burkina Faso,)

  • T gawend Juliette Nana

    (University of Sine Saloum Elhadj Ibrahima Niass in Senegal,)

  • Maimouna Hama Natama

    (Universit Ouaga II, Burkina Faso,)

  • Fid le Bama

    (Minist re de la Sant Ouagadougou, Burkina Faso,)

  • Emma Tapsoba

    (Direction G n rale de l'Economie et de la Planification Ouagadougou, Burkina Faso.)

  • Kassoum Zerbo

    (Universit Ouaga II, Burkina Faso,)

Abstract

The impact of economic and trade expansion of China on Burkina Faso's economy is analyzed in this work through three channels: trade in goods and services, foreign direct investment and development assistance. To capture the direct and indirect effects of Chinese growth, we use a computable general equilibrium model. The results show that expanded trade with China leads to an increase in domestic prices, an increase in exports to China among product categories for which exports increases, and an increase in imports. The effect on growth, value added ad household wellbeing is small. We find a decline in domestic prices, an increase in exports and a decline in imports. Higher FDI inflows induce additional economic growth equal, increased total labour demand and increased average household well-being, especially among cotton farmers.

Suggested Citation

  • Boureima Sawadogo & T gawend Juliette Nana & Maimouna Hama Natama & Fid le Bama & Emma Tapsoba & Kassoum Zerbo, 2020. "Impact of Economic and Trade Expansion of China on Employment and Household Welfare in Burkina Faso: A Computable General Equilibrium Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 10(6), pages 139-153.
    • Handle: RePEc:eco:journ1:2020-06-18
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    More about this item

    Keywords

    FDI; Aid; trade; CGE; Chine; Burkina Faso;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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