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Impact of Economic and Trade Expansion of China on Employment and Household Welfare in Burkina Faso: A Computable General Equilibrium Analysis

Boureima Sawadogo, Tégawendé Juliette Nana, Maimouna Hama Natama, Fidèle Bama, Emma Tapsoba and Kassoum Zerbo
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Boureima Sawadogo: Université Ouaga II, Burkina Faso,
Tégawendé Juliette Nana: University of Sine Saloum Elhadj Ibrahima Niass in Senegal,
Maimouna Hama Natama: Université Ouaga II, Burkina Faso,
Fidèle Bama: Ministère de la Santé Ouagadougou, Burkina Faso,
Emma Tapsoba: Direction Générale de l'Economie et de la Planification Ouagadougou, Burkina Faso.
Kassoum Zerbo: Université Ouaga II, Burkina Faso,

International Journal of Economics and Financial Issues, 2020, vol. 10, issue 6, 139-153

Abstract: The impact of economic and trade expansion of China on Burkina Faso's economy is analyzed in this work through three channels: trade in goods and services, foreign direct investment and development assistance. To capture the direct and indirect effects of Chinese growth, we use a computable general equilibrium model. The results show that expanded trade with China leads to an increase in domestic prices, an increase in exports to China among product categories for which exports increases, and an increase in imports. The effect on growth, value added ad household wellbeing is small. We find a decline in domestic prices, an increase in exports and a decline in imports. Higher FDI inflows induce additional economic growth equal, increased total labour demand and increased average household well-being, especially among cotton farmers.

Keywords: FDI; Aid; trade; CGE; Chine; Burkina Faso (search for similar items in EconPapers)
JEL-codes: F14 F35 D58 O19 (search for similar items in EconPapers)
Date: 2020
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