Chinese Presence in Africa: A Panel Smooth Threshold Regression Approach

Ibrahim Nana

Chapter 9 in Institutional Change and China Capitalism:Frontier of Cliometrics and its Application to China, 2022, pp 217-255 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Considering China’s growing but criticized presence in Africa over the last decades, this chapter investigates the effect of the presence of China in Africa (through value-added trade and foreign direct investments) on the level of technological sophistication of African countries’ exports independently of the determinants of this presence. Using a panel smooth threshold regression model on 49 African countries from 1995 to 2015, we attempted to identify whether interactions between China and African countries through global value chains have led to technology transfer. Technology transfer was split into direct and indirect technology transfer. The results highlighted the absence of direct technology transfer from China to African countries except for those that are highly endowed with human capital and strong institutions. In addition, evidence existed of indirect technology transfer through imports of intermediate goods by African countries from China. Compared with relevant literature, we used the export sophistication index following the methodology of Maurer (2017) and investigated technology transfer resulting from value addition created in China and exported to African countries; this prevented us from capturing technology transfer that resulted from China in addition to its trade partners.

Keywords: China; Macroeconomics; Cliometrics; Institutional Economics; Complexity; Economics; International Trade; Applied Econometrics; Econometrics; Empirical Finance; Behavioral Finance; Economic History; Sociology; Gender Studies (search for similar items in EconPapers)
JEL-codes: B1 B2 F10 F15 F4 N15 O11 P1 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9781800611238_0009 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9781800611238_0009 (text/html)
Ebook Access is available upon purchase.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9781800611238_0009

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().