EconPapers    
Economics at your fingertips  
 

The impact of Chinese competition on Africa’s manufacturing

Sylviane Guillaumont Jeanneney () and Ping Hua ()
Additional contact information
Ping Hua: CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique

Working Papers from HAL

Abstract: In this paper, the impact of Chinese competition on Africa's manufacturing value added is analyzed through a model of manufacturing. Using panel data on 44 African countries covering the period 2000 to 2013, and controlling for the usual determinants of industrialization – such as the size of the domestic market, the quality of infrastructure and governance – we find that exports of manufactured goods by China and other countries to African countries mainly exert a negative effect on African manufacturing, while a moderate real appreciation of African currencies vis-à-vis the renminbi positively influences manufacturing value added, probably due to the reduced cost of imported machine and transport equipment from China (which accounted for 36% of total African imports from China in 2013) and to the reduced price of imported consumption goods increasing the remuneration of poor workers and therefore improving their productivity. However, a strong real appreciation (of more than 33%) instead exerts a negative effect on African's manufacturing, as traditional theory predicts.

Keywords: manufacturing; China; Africa; real exchange rates. (search for similar items in EconPapers)
Date: 2015-07-22
New Economics Papers: this item is included in nep-cna
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01179283
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://shs.hal.science/halshs-01179283/document (application/pdf)

Related works:
Working Paper: The impact of Chinese competition on Africa’s manufacturing (2016) Downloads
Working Paper: The impact of Chinese competition on Africa’s manufacturing (2016) Downloads
Working Paper: The impact of Chinese competition on Africa’s manufacturing (2015) Downloads
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:hal:wpaper:halshs-01179283

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2023-06-15
Handle: RePEc:hal:wpaper:halshs-01179283