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African trade dynamics: is China a different trading partner?

Paul De Grauwe, Romain Houssa and Giulia Piccillo

Journal of Chinese Economic and Business Studies, 2012, vol. 10, issue 1, 15-45

Abstract: This paper employs the standard gravity model to identify the quality of governance of China's African trade partners. As a benchmark, we perform the same analysis on other major African trade partners: France, Germany, UK, and USA. Data from 53 African countries in 1996--2009 show that only China is consistently willing to import more from African countries with a lower governance standing. By doing so; China fills a gap left open by the other major world economies, and might even play a key role in the future development of Africa.

Date: 2012
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DOI: 10.1080/14765284.2012.638460

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