China's economic embrace of Africa: An international comparative perspective

T. Broich () and Adam Szirmai
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T. Broich: UNU-MERIT

No 2014-049, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT)

Abstract: This paper discusses the entry of China into the game of foreign finance in Africa. It analyses the scope, destination and sectoral distribution of Chinese financial flows and trade in comparison with Western patterns and trends of aid, foreign direct investment FDI and trade. Chinas foreign aid and manufacturing investment flow to Africas physical infrastructure and productive sectors of agriculture and manufacturing fill the vacuum which emerged when Western financial flows shifted to other sectors and activities. In contrast, Chinas trade patterns with Africa highly resemble those of Africas leading Western trading partners. Africa imports manufactured goods and exports primary goods. Differences in relative factor endowments of labour, capital and natural resources are largely responsible for the pattern of Sino-African trade.

Keywords: Foreign aid; Financial aid; Foreign direct investment; FDI; Trade; Trade patterns; Africa; China; Economic development (search for similar items in EconPapers)
JEL-codes: F10 F21 F35 F50 O19 O53 O55 (search for similar items in EconPapers)
Date: 2014-05-31
New Economics Papers: this item is included in nep-afr, nep-cna and nep-int
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:unm:unumer:2014049

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