China and Africa: Building an economic partnership

Shelton, Garth

doi:10.1080/10220460109545365

Cited by 17 publications

(11 citation statements)

References 3 publications

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“…The impacts of China on African economy from three aspects, trade, FDI and aid [2]. Many researchers identified the most popular specific determinants of FDI in the region to include natural resources, market size, low labor cost, openness to trade, low taxes, incentives, political stability, favorable policies, and in some cases, good infrastructure [3][4]. Natural resources consistently seem to be the most dominant determinant of FDI into the African region.…”

Section: Literature Reviewmentioning

confidence: 99%

Empirical Analysis of Trade Effects of China’s Outward FDI to Africa

Fu¹,

Nicole²,

Zhuang³

2019

Proceedings of the 2019 4th International Conference on Modern Management, Education Technology and Social Science (MMETSS 2019

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This paper tries to reexamine both positive and negative effects of trade and China's outward foreign direct investment (FDI) to Africa. We focus on the achievement of China's outward FDI to Africa and whether the trade impacts of China on Africa are positive by making regression equations of panel data of the major African countries which have the most stock of China's outward FDI. Due to the results, we find that trade creation exists rather than trade substitution if China's outward FDI increases. Therefore, China's increased engagement with Africa could generate important gains for African economies. Trade openness of host country and economic scales of both traders have positive impacts on the export of both sides. Additionally, the influence of China's outward FDI is limited and the development of African countries mostly depend on the growth of their own economies. In terms of policy implications, these results clearly demonstrate the opportunities and challenges that African countries are facing when dealing with a partner like China.

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Section: Literature Reviewmentioning

confidence: 99%

Empirical Analysis of Trade Effects of China’s Outward FDI to Africa

Fu¹,

Nicole²,

Zhuang³

2019

Proceedings of the 2019 4th International Conference on Modern Management, Education Technology and Social Science (MMETSS 2019

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“…3 ISSN: 2222 necessitated the increased demand for raw materials hence increased China involvement in Africa. Also Shelton (2001) and Cornelissen et al (2000:615) point out that China`s foreign policy for Africa is confined itself in increasing economic interaction, thus her politics and ideology are of less concern in this circumstance.…”

Section: Literature Reviewmentioning

confidence: 99%

Empirical Analysis of China-Africa Economic and Trade Cooperation for Good or Bad: A Case of Tanzania

Rutaihwa¹,

Mkwawa²

2011

IJARBSS

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This study investigated China-Africa Economic and Trade ties taking Tanzania as the case study and the prime objective was to identify the main drivers for the bilateral trade and the benefits of the ties. The study draws theoretical framework from Realism, Dependency and Marxist theories of Imperialism. The dependency theory explains underdevelopment while the Marxist explains dominant state expansion. This study mainly employs descriptive research approach to asses China-Tanzania economic and trade ties. Data is drawn from industrial annual reports, previous research, journals, magazines, documentation and websites. Other sources are Tanzania Investment Centre (TIC) and Business Registration and Licensing Agency of Tanzania (BRELA). The scope of the study is limited to 1990-2010. The findings of the study show that engagement of China in Tanzania poses both opportunities and challenges. The nature of China`s investment in Tanzania has been capital intensive and been mostly directed to strategic industries, particularly manufacturing sector the leading sector in which Chinese investors have injected more projects, followed by construction, agricultural, tourism and services sectors among others. Similarly, the study finds that the imported commodities and goods from China have been affordable to most of lowincome earners hence increases consumers choice and contribution to Tanzania Economic growth. However, the negative effects cannot be neglected; the investments have led into the influx of low quality products that do not meet market standards. Therefore, this study recommends that the government should ensure that the partnership with China is for a win-win situation.

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“…Bandung initiated an international campaign for Afro-Asian solidarity based on the contention that Asians and Africans shared common economic and political objectives that could be better achieved through cooperation. This philosophy has remained a key component of China's Africa policy (Shelton, 2001).…”

Section: China and Africa During The Cold War: From Ideology To Pragmatismmentioning

confidence: 99%

China and Africa

Konings

2007

Journal of Developing Societies

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This article focuses on China's growing engagement with Africa – a subject that has not been given due attention in African studies. Following a review of the various shifts and continuities in Sino-African relations since the 1950s, the study sets out to explain the renewed interest of China in Africa since the end of the 1980s. Africa's interests in China complement much of the agenda being promoted by Beijing. Governing and business elites within Africa see new opportunities in China: trade (growing Chinese markets for African products) and investment opportunities, ways to bolster regime stability, and strategically important partnerships. Particularly attractive for many African rulers is the alternative development model propagated by China: non-interference in state sovereignty, freedom from ‘western hegemony’, and absence of any conditions in giving aid. However, there are also points of tension. One of them is trade since the balance of trade favours China. Local industries (especially manufacturing and textiles) and merchants have been hard hit by the flood of cheap Chinese imports. In addition, the newly created Pan African organizations like the African Union and the New Economic Partnership for African Development(NEPAD) represent a challenge to non-interference in state sovereignty, and call for ‘good governance’.

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China and Africa: Building an economic partnership

Cited by 17 publications

References 3 publications

Empirical Analysis of Trade Effects of China’s Outward FDI to Africa

Empirical Analysis of Trade Effects of China’s Outward FDI to Africa

Empirical Analysis of China-Africa Economic and Trade Cooperation for Good or Bad: A Case of Tanzania

China and Africa

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