Top

Published in:

2022 | OriginalPaper | Chapter

Chinese Foreign Direct Investment in Africa: Its Motivations, Determinants, and Impact on the African Economies

Author : Kevin Honglin Zhang

Published in: The Palgrave Handbook of Africa’s Economic Sectors

Publisher: Springer International Publishing

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

China’s foreign direct investment (FDI) in Africa in the twenty-first century has increased significantly. This chapter provides comprehensive and comparative analyses of major features of China’s FDI in Africa, including its motivations, determinants, position in the world, and impact on African economies. We find that (a) the Chinese investment has risen substantially in recent years, but remains small relative to the traditional investors from Europe and the US; (b) sectoral distribution and motivations of the China’s FDI are similar to those from traditional investors (OECD member countries); and (c) special benefits of China’s FDI to Africa include investment in construction-infrastructure and suitable technologies in labor-intensive projects; while potential problems are related to the debt trap and lack of job creation.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Technik"

Online-Abonnement

Mit Springer Professional "Technik" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 390 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Maschinenbau + Werkstoffe

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

previous chapter “Flying Geese” or False Promises: Assessing the Viability of Foreign Direct Investment-Driven Industrialization in Nigeria's Shoe Manufacturing Industry

next chapter What Can Trade Tell Us About Economic Transformation? Composition of Trade and Structural Transformation in African Countries

Brautigam, D. (2009). China in Africa: The real story, Oxford University Press.

Brautigam, D. (2015). “5 myths about Chinese investment in Africa.” Foreign Policy, December 4, 2015.

Brautigam, D., X. Tang, and Y. Xia (2018). “What kinds of Chinese ‘geese’ are flying to Africa? Evidence from Chinese manufacturing firms.” Journal of African Economies, 27 (1): 29–51.CrossRef

Chen, W., D. Dollar, and H. Tang (2018). “Why is China investing in Africa? Evidence from the firm level.” World Bank Economic Review, 32 (3): 610–632.

Chen, Y., and D. Landry (2016). “Where Africa meets Asia: Chinese agricultural and manufacturing investment in Madagascar.” Working Paper No. 2016/5. Johns Hopkins University.

Chen, W., and H. Tang (2014). “The dragon is flying West: micro-level evidence of Chinese outward direct investment.” Asian Development Review, 31 (2): 109–140.CrossRef

Chen, Y., R. Zhai, and K. H. Zhang (2019). “Natural resources and foreign direct investment in Africa: evidence from Chinese firm.” Sustainability, 12 (22): 1–18.

Davies, K. (2013). “China investment policy: An update.” OECD Working Papers on International Investment, 2013/01, OECD Publishing.

Dollar, D. (2019). “Understanding China’s belt and road infrastructure projects in Africa.” Brookings Institution.

Dollar, D. (2016). “China’s engagement with Africa: from natural resources to human resources.” Washington, DC: Brookings Institution.

Farrell, J. (2016). “How do Chinese contractors perform in Africa? Evidence from World Bank projects.” China Africa Research Initiative Working Paper No. 3, Johns Hopkins University.

Fayissa, B., C. Nsiah, and P. V. Joshi (2010). “Perceived financial risk and the economic growth of sub-Saharan African countries.” Economia Internazionale / International Economics, 62 (2): 179–192.

French, H. W. (2014). China’s second continent: How a million migrants are building a new empire in Africa. Knopf Doubleday Publishing Group.

Foster, V., and C. M. Briceno-Garmendia (eds.) (2009). Africa’s infrastructure: A time for transformation. 2009 World Bank Report.

Gutman, J., A. Sy, and S. Chattopadhyay (2015). “Financing African infrastructure: Can the world deliver?” Africa Growth Initiative Publications, Brookings Institution.

Hurley J., S. Morris, and G. Portelance (2018). “Examining the debt implications of BRI from a policy perspective.” Center for Global Development Policy Paper. Washington, DC.

John Hopkins School of Advanced International Studies (SAIS) (2019). “Data: Chinese Workers in Africa.” China Africa Research Initiative Database. http://www.sais-cari.org/s/LaborData.xlsx.

Landry, D. G. (2019). “Comparing the determinants of Western and Chinese commercial ties with Africa.” Working Paper No. 2019/29, Johns Hopkins University, Washington, DC.

Ministry of Commerce (MOFCOM) of China (2011). 2010 Statistical bulletin of China’s outward foreign direct investment, Beijing, China.

Ministry of Commerce (MOFCOM) of China (2018). 2017 Statistical bulletin of China’s outward foreign direct investment, Beijing, China.

Ministry of Commerce (MOFCOM) of China (2019). 2018 Statistical bulletin of China’s outward foreign direct investment, Beijing, China.

Odenthal, N. (2001). “FDI in Sub-Saharan Africa.” Technical Paper No. 173, OECD Development Center.

Organization for Economic Co-operation and Development (OECD) (2008). OECD investment policy reviews-China 2008: Encouraging responsible business conduct. OECD: Paris.

Sautman, B., and H. Yan (2015). “Localizing Chinese enterprises in Africa: From myths to policies.” HKUST IEMS Thought Leadership Brief Series # 2015–05, HKUST Institute for Emerging Market Studies.

Sauvant, K. P. and M. D. Noland (2015). “China’s outward foreign direct investment and international investment law.” Journal of International Economic Law, 8 (4): 893–934.

Schiere, R., L. Ndikumana, and P. Walkenhorst (ed.) (2011). China and Africa: An emerging partnership for development? African Development Bank Group.

United Nations Conference on Trade and Development (UNCTAD) (2006). World Investment Report 2006: FDI from developing and transition economies: implications for development, New York and Geneva: United Nations.

United Nations Conference on Trade and Development (UNCTAD) (2019). UNCTAD Database.

Weisbrod, A. and J. Whalley (2011). “The contribution of Chinese FDI to Africa’s pre crisis growth surge.” NBER Working Paper No. 17544.

World Bank (2019). World Development Indicators, Washington, DC: World Bank.

Zhang, K. H. (2006) (ed.), China as the World Factory. Routledge, Taylor & Francis Group plc., London.

Zhang, K. H. (2004). “Maximizing benefits from FDI and minimizing its costs: What do we learn from China?” in Kehal (ed.), Foreign Investment in Developing Countries, Palgrave/Macmillan: 78–91.

Zhang, K. H. (2009). “Rise of Chinese multinational firms.” The Chinese Economy, 42 (6): 81–96.CrossRef

Zhang, K. H. (2010). “How does globalization affect industrial competitiveness?” Contemporary Economic Policy, 28 (4): 502–510.

Zhang, K. H. (2015). “Macro- and micro-drivers of manufacturing performance of China.” Chinese Economy, 48 (6): 399–412.

Zhang, K. H. (2021). “How does South-South FDI affect host economies? Evidence from China-Africa in 2003–2018.” International Review of Economics and Finance, 75 (22): 690–703.

Title: Chinese Foreign Direct Investment in Africa: Its Motivations, Determinants, and Impact on the African Economies
Author: Kevin Honglin Zhang
Publisher: Springer International Publishing
Book: The Palgrave Handbook of Africa’s Economic Sectors
Print ISBN: 978-3-030-75555-3

Electronic ISBN: 978-3-030-75556-0

Copyright Year: 2022
DOI: https://doi.org/10.1007/978-3-030-75556-0_23

Springer Professional

Abstract

Please log in to get access to your license.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Technik"

Springer Professional "Wirtschaft"