Does Chinese Outward Direct Investment (ODI) To Africa Stimulate The Sino-African Trade CO Operation? (A Case of Sub-Sahara African Economies)”.

Author(s)

Allieu Badara Kabia , Professor Ji-Zhong Huang , Ibrahim Dumbuya , Yuan Yuan Xing ,

Download Full PDF Pages: 49-85 | Views: 324 | Downloads: 99 | DOI: 10.5281/zenodo.3464732

Volume 5 - April 2016 (04)

Abstract

The Chinese Outward Direct Investment has expanded exponentially over the past years affecting the intensity of trade ties and the presence of China‘s contracted projects with high level of significance in volume and diversity across the African Continent. The purpose of this study is to assess and examine 24 Countries in Sub-Sahara Africa during the period 2003 to 2013(10 years) to investigate whether or not the Chinese Outward Direct Investment to Africa stimulate the Sino- African Trade cooperation with a clarity showing the rigidity which both parties have to balance to enforce the win-win benefit. For data analyses, the study adopts a panel data to analyze Chinese ODI exports to Africa, and a time series data to investigate the effect of its imports from Africa. The study reveals that Chinese Outward Direct Investment to Africa has contributed significantly and paying off as it has plays a vital role in increasing Chinese exports to Africa as well as imports from Africa especially in the oil and other raw materials imports and manufactured goods. The research found also that per capita income and annual percentage growth of domestic product of China have a positive effect on its import. Macroeconomic Policy makers and regulators would use the research finding recommendations as a proxy for sound Policy implementation that strengthen and enhance China‘s Outward Direct Investment and trade cooperation with SSA for a win-win benefit to attain a sustainable growth and development.

Keywords

China, Chinese Outward Direct Investment, Trade co-operation, Sub-Sahara Africa, 

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