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: 302 | Downloads: 87 | 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

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