The Impact of China One Belt One Road on Abidjan Port Development Based on Gravity Model

Abstract

Being one of the most competitive ports in West Africa, Abidjan Port aims to become the leading port in the region. In this article, the impact of China One Belt One Road strategy on Abidjan port is being studied and analyzed by the Chinese investment on Abidjan port and also the analysis of the trade potential between China and Ivory Coast. The Gravity Model is applied through a Hausman test and an empirical test to determine the significant variables affecting the bilateral trade between the two countries. During the application of the Hausman test, the null hypothesis was rejected and the fixed effect model was found to be the most appropriate model to use. The results found, showed that the population and the gross domestic product (GDP) are the two factors which have a great influence on the bilateral trade between these two countries. It has also been found that there is a large trade potential between the two countries. The time series model is used with the autoregressive model to forecast the China export trade value to Ivory Coast from 2016 to 2018. Some strategies have also been suggested for the development of Abidjan port with the support from the China One Belt One Road strategy.

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