Transnational financial assistance and enhancement of agricultural production value: a perspective based on China–Africa agricultural cooperation practices

Wei Yuan, Wenjin Guan, Guoyi Zhang, Xun Xu and Sheng Li

China Agricultural Economic Review, 2025, vol. 17, issue 3, 551-563

Abstract: PurposeThis paper seeks to examine the role and obstacles of financial aid in elevating the value of agricultural production within the framework of China–Africa agricultural cooperation. It endeavors to assess the efficacy and challenges of Chinese financial assistance to Africa and its broader significance for the global diffusion of successful economic practices in China–Africa agricultural collaboration.Design/methodology/approachThe methodology adopted in this study entails the construction of an unbalanced panel econometric model, utilizing data from 29 African countries over the period from 2000 to 2020. This approach facilitates a comprehensive analysis of the influence of Chinese financial aid on agricultural development across African nations.FindingsEmpirical research indicates that China’s financial assistance loans have significantly enhanced the value of agricultural production in Africa. Furthermore, their impact exhibits industrial and regional heterogeneity, and there is a synergistic effect with China’s agricultural technology demonstration centers. The study also highlights several challenges currently faced by China’s financial assistance to Africa, including insufficient project sustainability, limited financial resources and underdeveloped market infrastructure in African countries.Originality/valueThe originality of this paper lies in its focus on China–Africa agricultural cooperation practices. By integrating the FAOSTAT and CLA databases, it constructs an unbalanced panel econometric model to empirically analyze the impact of China’s financial assistance to Africa on agricultural production in Africa. Furthermore, it discusses the practical challenges faced by China–Africa agricultural cooperation. Based on this, combined with quantitative and qualitative analysis, it proposes financial assistance strategies to promote the value enhancement of agricultural production in Africa.

Keywords: Financial assistance; Agricultural production value; China–Africa agricultural cooperation (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:caerpp:caer-10-2024-0364

DOI: 10.1108/CAER-10-2024-0364

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