The impact of China's foreign direct investment on Africa's inclusive development

Sylvaire, Debongo Devincy Yanne; Qing, WU; Ran, Chang He; Kassai, Diane Laure; Vincent, Nzabana; Douce, Djossouvi Adjoa Candide; Frank, Osei-Kusi; NICAISE, NGUEFIO PRINCE; Boris, Awadji Fabrice

doi:10.1016/j.ssaho.2022.100276

Cited by 14 publications

(6 citation statements)

References 8 publications

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“…Our findings in Table 3 reveal a significant positive effect of Chinese OFDI stock on economic growth, aligning with Solow's Growth Model (Solow 1956), highlighting the critical role of investment in economic development, a notion supported by recent studies by Fofana, Xia, and Traore (2018) and Sylvaire et al. (2022). However, our results contradict findings by Miao et al.…”

Section: Empirical Results and Discussionsupporting

confidence: 85%

“…Moreover, Sylvaire et al. (2022) have also demonstrated how FDI contributes to economic growth, particularly in developing countries, by supplementing domestic capital.…”

Section: Literature Reviewmentioning

confidence: 99%

“…While Sylvaire et al. (2022) and Fofana, Xia, and Traore (2018) argue that Chinese OFDI fosters economic growth, Allou et al. (2020) contend that it has no discernible effect on African economic growth.…”

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confidence: 99%

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Driving economic growth in African countries: Do Chinese OFDI sectors matter?

Fambo,

Shunqi

2024

Social Science Quarterly

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BackgroundRecent years have witnessed a growing interest among academics and policymakers in understanding the mechaninsms through which Chinese outward direct investment (OFDI) impact economic growth in Africa.MethodThis study utilzes a dataset spanning 41 African countries from 2005 to 2020,employing panel‐corrected standard error (PCSE) and quantile regression.ObjectiveThis study explore the mechanisms through which Chinese OFDI stock contributes to economic growth in Africa,with a particular focus on financial development and transport infrastructure.ResultsThe results indicate a significant and positive impact of the interaction between Chinese OFDI stock and both financial development and transport infrastructure on economic growth. The subregional analysis reveals varying correlations across regions, while the quantile regression analysis demonstrates a stronger effect on economic growth as we move to higher quantiles.ConclusionThe study underscores the importance of enhancing infrastructure and financial sector development to attract more Chinese OFDI and maximize its positive impact of economic growth in African nations. Hence, we recommend that African countries improve the infrastructure and financial sector of their country to attract more chinese OFDI and also enhance its effectiveness on their economic growth.

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Section: Empirical Results and Discussionsupporting

confidence: 85%

“…Moreover, Sylvaire et al. (2022) have also demonstrated how FDI contributes to economic growth, particularly in developing countries, by supplementing domestic capital.…”

Section: Literature Reviewmentioning

confidence: 99%

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Driving economic growth in African countries: Do Chinese OFDI sectors matter?

Fambo,

Shunqi

2024

Social Science Quarterly

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“…Jones and Ndofor (2022) highlight the growing concern of African indebtedness linked to Chinese investments. Debongo et al (2022) present an optimistic view, emphasising the positive impacts of Chinese foreign direct investment on African economic development. However, they also underscore the need for sound policy implementation to maximise these benefits.…”

Section: China's Rising Influence In Africa: a Multifaceted Approach ...mentioning

confidence: 99%

“…The extensive literature on China's growing economic and technological influence in Africa encompasses diverse perspectives, delving into institutional quality (Mlambo, 2022), debt dynamics (Jones & Ndofor, 2022), inclusive development (Debongo et al, 2022), small-and medium-sized enterprise (SME) engagement (Chen, 2020;Runde et al, 2021) and the broader impact on local suppliers and industries (Giovannetti & Sanfilippo, 2016;Shen, 2014;Shen & Power, 2016). This body of work also highlights a pivotal shift from China's focus on infrastructure to innovation in applications and services (CIO, 2021;Hruby, 2021), raising critical discussions about dependency and security concerns (Enuka, 2011;Mason, 2017).…”

Section: Introductionmentioning

confidence: 99%

China’s technological footprint in Africa: A patent network analysis

Rojo

2024

South African Journal of Business Management

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Purpose: The study aims to examine China’s rising technological influence in Africa within the context of Industry 5.0 and how it compares to traditional powers like the European Union (EU) and the United States (US).Design/methodology/approach: Utilising an innovative patent network analysis methodology, this study draws on data from the World Intellectual Property Organization’s (WIPO) Centre for Intellectual Property Statistics from 2001 to 2021.Findings/results: The analysis reveals China’s significant and growing presence in technological diffusion throughout Africa, potentially surpassing regional historical players.Practical implications: These findings have far-reaching implications for policy formulation and management strategies, particularly in a global landscape where technology standards and patents can significantly influence economic and business dynamics.Originality/value: This study contributes to the existing literature by offering a nuanced understanding of power dynamics in African value chains and a new context for relations between developed and developing countries. It emphasises the strategic importance of understanding technological centrality in emerging regions.

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Analyzing inclusive green growth in China: a perspective of relative efficiency

Zhao

Gao

Jia

2022

Environ Sci Pollut Res

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Inclusive Green Growth (IGG) has important reference value for China's ecological civilization construction and transformation of economic development. Therefore, this study assesses China's IGG level from the perspective of relative efficiency. The IGG efficiency (IGGE) was measured at the provincial level in China from 2000 to 2017 by using super Epsilon-based measure (EBM) model that considers undesirable outputs. The spatiotemporal pattern of IGGE was analyzed by kernel density estimation and spatial autocorrelation. The results indicate a fluctuating trend from 2000 to 2017 for the IGGE of China, and significant differences between regional interprovincial IGGE were observed. On average, the eastern region presented the highest efficiency, while the level in the central and western regions was similar. There is a positive spatial autocorrelation in the IGGE distribution, and the agglomeration of spatial distribution fluctuated during the study period. The IGGE has significant spatial spillover effects at the provincial level according to the spatial Durbin model. Among the influencing factors, the spatial spillover effects of dependence on import and export trade and technological innovation are significant. The regression results also confirm the Environmental Kuznets Curve effect between IGG and economic growth in China. Finally, some implicit policies can be established based on the empirical analysis.

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The impact of China's foreign direct investment on Africa's inclusive development

Cited by 14 publications

References 8 publications

Driving economic growth in African countries: Do Chinese OFDI sectors matter?

Driving economic growth in African countries: Do Chinese OFDI sectors matter?

China’s technological footprint in Africa: A patent network analysis

Analyzing inclusive green growth in China: a perspective of relative efficiency

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