An Assessment Of Sino-Africa Trade CO-Operation And Its Impact In Africa (A Case Of Sub-Sahara African Economies).

Author(s)

Allieu Badara Kabia , Professor Ji-Zhong Huang , Yuan Yuan Xing , Alimamy Amara ,

Download Full PDF Pages: 86-138 | Views: 331 | Downloads: 94 | DOI: 10.5281/zenodo.3464738

Volume 5 - April 2016 (04)

Abstract

Over three decades ago, China has become a major economic partner of Sub-Sahara Africa region with an expansion of the SinoAfrican Trade volumes evident by the presence of various Chinese projects in SSA, especially the one implemented by the Ministries of Foreign Affairs and Trade supported by quite a lot of State-owned Banks with a strategic focused on bilateral relationships with the African governments.However, the trade relation between China and Africa has remarkably displayed an amount of diversity across the Countries within the SSA region over time, and for different kinds of trade. The purpose of this thesis is to examine the determinant of the Sino-Sub Sahara AfricaTrade relation and evaluate the impact of Chinese trading activities in Sub-Sahara African economies. The research paper selected twenty-four (24) Sub-Sahara African Countries including six (6) from each region respectively and adopt three(3) empirical models for data analyses.Firstly, a simple Augmented-Growth Model was adopted for Analysis employing a timesseries dimension in the data for the period 1995 to 2013(18 years) using a panel data approach to predict Trade with China determined by three (3) factors: Access to local markets, securing natural resources, and political considerations reflecting the three strategic challenges facing China highlighted by Brautigam (2009): The thirst to discover new export markets to enhance the expansion of domestic production; The need to find more resources abroad in meeting the demand of rapid economic growth and the necessity for allies among developing countries to compensate the prevalence of developed countries such as; the IMF and the UN. Secondly, the study also used an empirical model for explaining Chinese FDI export to Africa adopting a panel data and a time series data to investigate the effect of its imports from Africa and for explaining China‘s imports from Africa during the period under review

Keywords

 China, Sino-AfricaTrade Co-operation, Foreign Direct Investment , Sub-Sahara Africa

References

  1. A CAPITAL. Dragon Index 2012: Full Year Report. [Online]. URL: http://www. acapital.hk/dragonindex/A_CAPITAL_DRAGON_INDEX_FY_2012_ENG.pdf
  2. A CAPITAL. Dragon Index 2013: Full Year Report. [Online]. URL:< http://wwwi thi acapital.hk/dragonindex/A%20CAPITAL%20DRAGON%20INDEX%20FY%202013%20ENG.pdf
  3. ADEKUNLE, B. GITAU, C. Illusion or Reality: Understanding the Trade Flow Between China and Sub-Saharan Africa. Journal of African Business, Vol. 14, No.2, pp. 117–126. July 2013. [Online]. URL: http://dx.doi.org/10.1080/15228916. 2013. 804361
  4. Ademola, O., Abiodun Bankole, and Adeolu Adewuyi, 2009, ―China-Africa Trade Relations: Insight from AERC Scoping Studies,‖ European Journal of Development Research, A.O., Vol. 21, No. 4, pp. 485–505.
  5. Ancharaz, V.D. (2008) David Versus Goliath: Mauritius Facing Up to China. A Scoping Study on China–Africa Economic Relations. Nairobi: AERC (mimeo).
  6. Bergstrand, J.(1985). The gravity equation in international trade: some microeconomic foundations and empirical evidence. The Review of Economics and Statistics, 67(3), 474-81
  7. BIGGERI, M., SANFILIPPO, M. Understanding China‘s Move into Africa: An Empirical Analysis. Journal of Chinese Economic and Business Studies Vol. 7, No. 1, February 2009, 31–54. [Online]. URL: http://www.tandfonline.com/loi/ rcea20#. UyFHs_l5OAU
  8. Brautigam, D. (2009). The dragon's gift: The real story of China in Africa. Oxford: Oxford University Press.
  9. BRAUTIGAM, DEBORAH, XIAOYANG, TANG. Africa‘s Shenzhen: China‘s Special Economic Zones in Africa. Journal of Modern African Studies, Vol.49, No.1, 2011.Pp.27–54.Cambridge University Press. [Online].URL:http://www. afriquechine. net/en/2011/African-Shenzhen-China-s-special-economic-zones-in-Africa.pdf 87
  10. BRAUTIGAM, DEBORAH. The Dragon‘s Gift – The Real Story of China in Africa. 1st Ed. Oxford: New York: Oxford University Press, 2009. ISBN-978-0- 19- 955022-7.
  11. Corkin, L. (2008) AERC Scoping Exercise on China–Africa Relations: The Case of Angola. Nairobi: AERC (mimeo).
  12. Doumbouya, S.F. and Gassama, I.S. (2008) Relations between Guinea and China: Trade, Investment and Aid. Nairobi: AERC (mimeo).
  13. Drummond, Paulo, and Estelle Xue Liu. 2013. ―Africa‘s Rising Exposure to China: How Large Are Spillovers Through Trade?‖ IMF Working Paper WP/13/250, Washington DC.
  14. Edinger, H. and Burke, C. (2008) AERC Scoping Studies on China–Africa Relations: A Research Report on Zimbabwe. Nairobi: AERC (mimeo).
  15. FOCAC. Forum on China-Africa Cooperation Beijing Action Plan (2013-2015). 23.07.2012, Beijing. [Online]. URL: http://www.focac.org/eng/ltda/ dwjbzjjhys/ t954620. htm 88
  16. FOCAC. Forum on China-Africa Cooperation Sharm el Shejk Action Plan (2009-12). 12.11.2009, Sharm El Sheikh. [Online]. URL: < http://www.focac.org/eng/dsjbzjhy/ hywj/ t626387.htm.>
  17. Geda, A. (2008) Scoping Study on the Chinese Relations with Sub-Saharan Africa: The Case of Ethiopia. Nairobi: AERC (mimeo).
  18. Giovanetti, G. and Sanlippo, M. (2009). Do Chinese exports crowd out African goods? An econometric analysis by country and sector. European Journal for Development Research, 21(4), 506-530.
  19. Ianchovichina, E., Matoo, A. and Olarreaga, M. (2002) Unrestricted market access for Sub-Saharan Africa: How much is it worth and who pays? Journal of African Economies 10(4): 410–432. | Article |
  20. Kaplinsky, R. (2008) China and the terms of trade: The challenge to development strategy in SSA. Paper prepared for Rise of China Global Opportunities and Challenges Conference; March, Mount Holyoke.
  21. Kaplinsky, R., McCormick, D. and Morris, M. (2006) The Impact of China on Sub-Saharan Africa. Beijing: DFID, China Office (mimeo).
  22. Lyons, M. and Brown, A. (2010). Has mercantilism reduced urban poverty in SSA? Perception of boom, bust, and the China-Africa trade in Lome and Bamako. World Development, 38(5), 771-782.
  23. Moshi, H.P.B. and Mutui, J.M. (2008) Scoping Studies on China–Africa Economic Relations: The Case of Tanzania. Nairobi: AERC (mimeo).
  24. Mwanawina, I. (2008) China–Africa Economic Relations: The Case of Zambia. Nairobi: AERC (mimeo).
  25. Ng, F. and Yeats, A.J. (2000) On the Recent Trade Performance of Sub-Saharan African Countries. Washington: World Bank. Africa Region Working Paper Series no 7.
  26. Odada, J.E. and Kakujaha-Matundu, O. (2008) China–Africa Economic Relations: The Case of Namibia. Nairobi: AERC (mimeo).
  27. Onjala, J. (2008) A Scoping Study on/China–Africa Economic Relations: The Case of Kenya. Nairobi: AERC (mimeo).
  28. Sanogo, A. (2008) Economic Relations of China and Sub-Saharan Africa: The Case of Mali. Nairobi: AERC (mimeo).
  29. Seka, P.R. and Kouakou, K.C. (2008) Economic Relations between China and Africa: The Case of Cote d' Ivoire. Nairobi: AERC (mimeo).
  30. Shinn, David H., and Joshua Eisenman. 2012. China and Africa: A Century of Engagement, 142–43. Philadelphia: University of Pennsylvania Press.
  31. Sillah, B and Jammeh, M.E. (2007) AERC Scoping Studies on China–Africa Economic Relations: The Gambia. Nairobi: AERC (mimeo).
  32. State Council of China. 2011. ―China-Africa Economic and Trade Cooperation.‖ Information Office, State Council of China, Beijing.
  33. Stevens, C. and Kennan, J. (2006) How to identify the trade impact of China on small countries. In: R. Kaplinsky, (ed.) Asian Drivers: Opportunity and Threat, IDS Bulletin 37, Brighton, UK: Institute of Development Studies.
  34. Tabo, S.N., Beassoum, C.N. and Asngar, T.M. (2008) Relations between China and Sub-Saharan Africa: The Case of Chad. Nairobi: AERC (mimeo).
  35. TRADE LAW CENTRE. China-Africa Trade Data 2013. August 2013. URL: http://www.tralac.org/2013/08/14/africa-china-tradingrelationship/
  36. Tsikata, D., Fenny, A.M. and Arête, E. (2008) China–Africa Relations: A Case Study of Ghana. A Scoping Study on China–Africa Economic Relations, Nairobi: AERC (mimeo).
  37. Tull, D.M. (2006). China's engagement in Africa: scope, significance, and consequences. Journal of Modern African Studies, 44(3), 459-79.
  38. United Nations International Trade Statistics Knowledge. 2010. ―Mirror Statistics.‖ UN Comtrade (UN Common format for Transient Data Exchange for power systems).
  39. World Trade, Organization. (2006) International Trade Studies 2006. Geneva, Switzerland: WTO.
  40. WTO. 2008. ―WTO Trade Policy Review – Secretariat Report 2008 and China Government Report‖.[Online].Available:http://www.wto.org/english/ tratop_ e/tpr_e/tp299_e.htm
  41. Zafar, Ali. 2007. ―The Growing Relationship between China and Sub-Saharan Africa: Macroeconomic, Trade, Investment, and Aid Links.‖ World Bank Research Observer 22 (1): 103–30.
  42. ———. 2013. ―‗Going Global in Groups‘: Structural Transformation and China‘s Special Economic Zones Overseas.‖ World Development 63: 78–91.
  43. ———. 2013. ―China-Africa Economic and Trade Cooperation.‖ Information Office, State Council of China, Beijing. 40

Cite this Article: