Can China Trigger Economic Growth in Africa?

Jean-Claude Maswana

Chinese Economy, 2009, vol. 42, issue 2, 91-105

Abstract: This paper tests the exports to China-led growth and imports from China-led growth hypotheses using Toda-Yamamoto's version of Granger non-causality combined with Johannes's cointegration and bootstrap diagnostic tests. The findings seemingly downplay the importance of the export-led growth hypothesis while suggesting that Africa might benefit from China's growth through technology-embodied capital good imports. In this sense, the findings support recent views that the gains from global trade depend less on the mere effects of trading than on the ability of countries to appropriately position themselves along the global value chain.

Date: 2009
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