 Understanding China's move into Africa: an empirical analysisMario Biggeri and Marco Sanfilippo Journal of Chinese Economic and Business Studies, 2009, vol. 7, issue 1, 31-54 Abstract: An important new issue on the international scene is the upsurge in market and non-market South-South relations. The aim of this paper is to understand the dynamics that lie behind the recent Chinese move into Africa by empirically exploring the determinants of Sino-African relationships. In order to have a comprehensive picture, the analysis takes into consideration the main channels of commercial and political interactions: outward foreign direct investment (OFDI), trade and aid (international economic cooperation). The empirical analysis utilises a panel data set, from 1998 to 2005, for 43 African countries. The econometric estimates for three simultaneous equations are based on an instrumental variables method. Results show that the Chinese move into Africa is driven by strategic interaction among the three channels (FDI, trade and economic cooperation) as well as by pull factors, i.e. the characteristics of the receiving countries in terms of natural resource endowments and their market potential. Keywords: China; Africa; FDI; trade; aid (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:jocebs:v:7:y:2009:i:1:p:31-54 Ordering information: This journal article can be ordered from DOI: 10.1080/14765280802604714 Access Statistics for this article Journal of Chinese Economic and Business Studies is currently edited by Professor Xiaming Liu More articles in Journal of Chinese Economic and Business Studies from Taylor & Francis Journals |
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