The Strategic Entry of China's Emerging Multinationals into Africa

Corkin, Lucy

doi:10.1177/000944550704300303

Cited by 22 publications

(14 citation statements)

References 6 publications

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“…Tull () argues that it is not yet evident that Chinese‐African trade will improve Africa's prospects for development because it will not reduce Africa's dependence on a few price‐volatile primary goods and the impact on long‐term sustainable growth is ambiguous. Corkin () examines Chinese multinationals and their activities in different sectors in Africa. Although he does not come to robust conclusions, he observes that the increase in trade between China and Africa could potentially benefit both partners.…”

Section: Literature Surveymentioning

confidence: 99%

Does Trade with China Have an Impact on African Countries' Growth?

Kummer‐Noormamode¹

2014

African Development Review

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The results of growth regressions using panel data econometric models for 37 African countries from 1985 to 2012show that trade with China has had a positive impact on African GDP, but only during the final decade of that period. They also suggest that during this period, trade with China tended to have more impact on African economies than trade with the EU. Furthermore, several robustness tests are performed and confirm these conclusions.

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Section: Literature Surveymentioning

confidence: 99%

Does Trade with China Have an Impact on African Countries' Growth?

Kummer‐Noormamode¹

2014

African Development Review

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“…As a benchmark for comparisons, we also include a few Western natural resource companies in our sample. We choose the empirical setting of Africa because Chinese natural resource companies have experienced rapid growth in that region despite the high political risks they face (Alden and Davies, ; Besada et al ., ; Broadman, ; Corkin, ; Kragelund, ; Mlachila and Takebe, ). In particular, we focus on investments in Tanzania and conduct extensive interviews with nine global extractive companies (five Chinese and four Western) and with several Tanzanian and Chinese government officials.…”

Section: Introductionmentioning

confidence: 99%

The Two‐Tier Bargaining Model Revisited: Theory and Evidence from China's Natural Resource Investments in Africa

Newenham‐Kahindi

Shapiro

et al. 2013

Global Strategy Journal

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In recent years, foreign direct investment (FDI) in natural resource industries by Chinese firms in Africa has increased rapidly. The strategic importance of the natural resource sector to host country governments produces considerable bargaining over entry and operating terms, with attendant political risks. Using case studies in Tanzania, we find that the Chinese government and firms engage in a bargaining model different from traditional models. Specifically, they engage in a modified one‐tier bargaining model in which the Chinese government represents the collective interests of Chinese natural resource firms to negotiate with the host country government. In exchange for investment deals in the natural resource sector, the Chinese government offers a package with loans that support multiple‐purpose development projects in various sectors, with a focus on infrastructure. Chinese firms act as a group to fulfill the Chinese government's commitments to the host country government. We discuss the boundary conditions for this Chinese‐style bargaining model and its relationship to political risk. We conclude that the Chinese model has unique elements, although they are likely limited to resource investments in developing countries.

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“…By securing cheap access to finance, the policy would help enterprises to internationalise. 28 sectors were targeted for this special attention, and by 2006 166 companies had been granted status of flagship enterprise (Corkin, 2007a). These companies also play a central role in China's African foreign aid policy, receiving commercial contracts part of the aid packages.…”

Section: Going-out Strategymentioning

confidence: 99%

Foreign Aid Strategies: China Taking Over?

Welle-Strand¹,

Kjøllesdal

2010

ASS

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Over the past decade China has emerged as an important source of foreign aid for African countries. Providing aid on terms of its own choosing, China challenges the current foreign aid paradigm in four main ways: The donor-recipient relationship is challenged by a partnership of equals; The modes of provision are challenged by China's focus on aid that is mutually beneficial; The use of conditionalities is challenged by China's insistence on sovereignty and non-interference in domestic affairs; Multilateralism is challenged by China's preference of going the major foreign aid projects alone. This article argues that China's aid programme is not likely to undergo drastic change, and that the effects of China's foreign aid on the traditional donors are already discernible on the African continent. The potency of these challenges might herald that the Chinese approach will provide the frame of reference for foreign aid in the future.

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The Strategic Entry of China's Emerging Multinationals into Africa

Cited by 22 publications

References 6 publications

Does Trade with China Have an Impact on African Countries' Growth?

Does Trade with China Have an Impact on African Countries' Growth?

The Two‐Tier Bargaining Model Revisited: Theory and Evidence from China's Natural Resource Investments in Africa

Foreign Aid Strategies: China Taking Over?

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