The Impact of Africa-China Trade Openness on Technology Transfer and Economic Growth for Africa: A Dynamic Panel Data Approach

Dinkneh Borojo () and Yushi Jiang ()
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Dinkneh Borojo: School of Economics and Management, Southwest Jiaotong University
Yushi Jiang: School of Economics and Management, Southwest Jiaotong University

Annals of Economics and Finance, 2016, vol. 17, issue 2, 403-431

Abstract: Using two-step system GMM estimator we analyze the impact of Africa-China trade openness on TFP and economic growth for 38 African countries for the periods 1995-2013 after controlling for edogeneity. The findings of this study reveal that Africa-China trade openness has robust positive effect on GDP growth of African countries. When Africa-China trade openness is interacted with the institutional quality and human capital of Africa, its effect on TFP is positive and significant. Hence, it needs strong domestic absorptive capacity of Africa to reap technology improvement effect of trade with China. These findings, therefore, provide evidence that Africa-China trade openness is an important contributor of economic growth for Africa.

Keywords: Trade Openness; Technology Transfer; Economic Growth; Africa-China; system GMM (search for similar items in EconPapers)
JEL-codes: F14 F15 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (2)

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