China's Impact on Africa - the Role of Trade, FDI and Aid

Matthias Busse, Ceren Erdogan and Henning Mühlen

No 206, IEE Working Papers from Ruhr University Bochum, Institute of Development Research and Development Policy (IEE)

Abstract: We investigate 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 2011, 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. Chinese foreign investment and aid in Africa does not have an impact on growth.

Keywords: China; Sub-Saharan Africa; Trade; FDI; Foreign aid; Economic growth; South-south cooperation (search for similar items in EconPapers)
JEL-codes: F14 F23 F35 O47 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Journal Article: China's Impact on Africa – The Role of Trade, FDI and Aid (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ieewps:206

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