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Technological progress, worker efficiency, and growth in Africa: Does China's economy matter?

Jean-Baptiste Habyarimana and Eric Evans Osei Opoku

China Economic Review, 2018, vol. 52, issue C, 151-164

Abstract: In the 21st century, the Sino–Africa relations are characterized by increasing levels of trade and investment. Additionally, African governments consider China a vital stakeholder in their plans to transform their economies through technology. This study empirically examines whether China's exports of information and communication technology and high-technology goods and foreign direct investment outflows stimulate growth in Africa. The results demonstrate that China's engagement in trade could lead to a positive and negative shift of steady-state position of real gross domestic product and technological progress, respectively, in Africa. These results predict that China's engagement will contribute to economic growth in African countries through increasing capital per worker efficiency but cause stagnation in their technological progress. Finally, one of the choices that African countries could make as they create policies to increase their technological progress is discussed.

Keywords: Technology; Worker efficiency; Economic growth; Sino–Africa (search for similar items in EconPapers)
JEL-codes: D24 F43 J24 O33 O47 O55 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:52:y:2018:i:c:p:151-164

DOI: 10.1016/j.chieco.2018.07.004

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China Economic Review is currently edited by B.M. Fleisher, K. X. D. Huang, M.E. Lovely, Y. Wen, X. Zhang and X. Zhu

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