China’s Impact on Africa – The Role of Trade, FDI and Aid

Publication Type
Journal contribution (peer reviewed)
Authors
Matthias Busse, Ceren Erdogan & Henning Mühlen
Year of publication
2016
Published in
Kyklos
Band/Volume
69/2
ISBN / ISSN / eISSN
1467-6435
DOI
10.1111/kykl.12110
Page (from - to)
228-262
Abstract

<p><span style="display: inline;">This paper investigates the impact of Chinese activities in sub-Saharan African countries with respect to the growth performance of economies in that region. Using a Solow-type growth model and panel data for the period 1991 to 2010, we find that African economies that export natural resources have benefited from positive terms-of-trade effects. In addition, there is evidence for displacement effects of African firms due to competition from China. On the other hand, Chinese foreign investment and aid in Africa does not appear to have a significant impact on African growth.<br /></span></p>

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