Can Cheetah Beat Tiger? A Comparative Analysis of Chinese Industrial Competitiveness with Sub-Saharan African Countries

Ehizuelen Michael Mitchell Omoruyi
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Ehizuelen Michael Mitchell Omoruyi: Institute of African Studies, Zhejiang Normal University, China

Bangladesh Development Studies, 2016, vol. 39, issue 3-4, 41-76

Abstract: This paper examines Sub-Saharan Africa’s industrial competitiveness with China, by employing a statistical methodology for studying competitiveness based on relative unit labour costs. The patterns of bilateral trade between China and SSA, as well as investment and financial aspects of the relationships are examined. The findings show that SSA’s relative unit cost levels have generally been higher than that of China. However, in the 2000s, the levels dropped as China’s wages increased faster than its productivity, while the reverse is true for SSA countries in the study sample. The study shows that SSA countries are unlikely to be competitive in labour-intensive manufacturing because of high relative unit labour costs and weaknesses in their business climate.

Keywords: Industrial Competitiveness; Sub-Saharan African Countries; China (search for similar items in EconPapers)
JEL-codes: A10 (search for similar items in EconPapers)
Date: 2016
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