Purpose
This study aims to examine the quantitative effect and direction of Chinese Foreign Direct Investment (FDI) on economic growth in Africa using a sample of 20 African countries from 2003 to 2012 with data obtained from United Nations Conference on Trade and Development and the World Bank.
Design/methodology/approach
The study used panel least squares regression, specifically fixed effect model to examine the quantitative effect of Chinese FDI on economic growth in Africa. The study also used Granger causality test to examine whether a causal relationship exists between economic growth and China’s FDI in Africa.
Findings
The study finds that a 1 per cent increase in China’s FDI stock in Africa significantly increases Africa’s gross domestic product (GDP) growth by 0.607 per cent, all things being equal. Furthermore, the study finds that a causal link exists between GDP growth in Africa and China’s FDI and the nature of causality is unidirectional.
Practical implications
The study recommends that to stimulate Chinese FDI in Africa, free visas must be given to Chinese investors coming into the continent, low tariffs should be imposed on inputs and intermediate goods from China and grant of business operation permit to Chinese investors must be made less bureaucratic.
Originality/value
This research has not been presented to any journal for publication and is originally written by the authors.
Feminization of poverty is a hypothesis that postulates that women experience poverty at higher rates than men. Over the years, empirical examination of this hypothesis has relied on the comparison between poverty status of femaleheaded and male-headed households due to lack of gender disaggregated data in many household surveys. However, the use of poverty among female-headed households as a representative measure of women's poverty masks the extent of poverty among women. Hence, this study uses individual gender disaggregated data from the Ghana Living Standards Surveys IV and V (GLSS IV and V) and the Foster-Greer-Thorbecke (FGT) classes of poverty measure to empirically test the "feminization of poverty" hypothesis in Ghana. The study also finds out whether this hypothesis is affected by the education level of the individual.The article finds that "feminization of poverty" is prevalent at all three levels of FGT poverty measures. The result further indicates that when education is taken into consideration, "feminization of poverty" is found to be prevalent only amongst the no education and primary education cohorts while masculinization of poverty is rather found among the secondary and tertiary education cohorts. Generally, in terms of the dynamic changes in "feminization of poverty," the study finds that over the last two sets of surveys (GLSS IV and V), the phenomenon has reduced. Based on the results, we recommend that measures that target education as a tool for combating poverty should be strengthened amongst females whilst non-educational tools for combating poverty should target males.
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