دانلود رایگان مقاله انگلیسی پیوند سرمایه گذاری و رشد آفریقا-چین - امرالد 2018

Abstract

Purpose – This paper aims to investigate China–Africa Investment link, using over two decades of FDI’s data. During the specified periods, African economic growth path has been predominantly upward trending, despite multiple external threats. This impressive growth was partly because of the growth of FDI stock across the region. This study explores the various sources of FDI to Africa, mainly China’s FDI’s and how they influence African macroeconomic indicators, i.e. unemployment, export and import activities. Design/methodology/approach – Pesaran autoregressive distributive lag (ARDL) is used as a framework to test the short-run and long-run relationship of indicators. Granger causality test checked the causality between growth and macroeconomic indicators. Findings – The link between China’s FDI and African economic growth reported a negative/declining effect in both short and long run. In the long run, the effect of world FDI on growth was significant but not the in the short run. However, US FDI to Africa, China Export and Import from Africa reported an insignificant effect on growth. There was no evidence of Okun’s law, as a decrease in Africa unemployment does not increase growth. Overall, China’s FDI’s inflows to Africa are allocated to capital-intensive activities which has less labor employability. The Granger causality test reported a uni-directional link between growth and all series, except for human capital which experienced no link at all in all directions. Despite the issue of socioinfrastructure militating against growth in the region, African economy is likely to perform better, if more FDI’s are channeled into labor-intensive activities, because it has a reductive effect on unemployment. Research limitations/implications – The research considered point annual FDI data but not accumulated stock and is a macro-based study, i.e. regional economy. Practical implications – This paper bridged the literature gap in African investment performance by providing an empirical justification in understanding the inflow of FDI, especially China. This is a useful guard in policy design and implementations in the attraction of the right type of investment, so as to reduce unemployment and promote growth. Originality/value – The authors confirm that this study has not been published elsewhere and is not under consideration in whole or in part by another journal.

5.1 Conclusions

The progress made by China–Africa economic cooperation in the past two decades has been laudable. Through this cooperation, many economies in Africa have had access to financial and infrastructural investments, which can be seen across the length and breadth such economies. Via mutual agreement, China has also gained tremendously from resource transfers and investment opportunities from Africa. China’s businesses are also significance across the economic space of Africa in the form of foreign direct and portfolio investment (existing as state and private industries). This study observes the real data, to infer whether Africa is gaining from China’s in increasing presence in the region. We observed this issue using over two decades of China and Africa FDI data. The series includes exports, imports, US FDI inflows to Africa, World FDI inflows to Africa and China’s FDI inflows to Africa. We also investigated the significance of openness on growth. Furthermore, the significance of Okun’s law was observed by considering unemployment index into the model.

Two interlinking models were considered, dynamic ARDL and Granger causality model. Furthermore, a static OLS model was introduced to check results’ certainty. According to the results, we found a consistent positive link between China FDI to Africa and economic growth in the long term. Similarly, the impact of world FDI inflows to Africa on growth was positive. This emphasizes the importance of foreign investment support to generate additional growth in Africa. However, the impact of US FDI inflows to Africa was not significant in both long and short run. The USA is a significant investment giant in the African economy. Regardless of the outcome, its investment inflows have some level financial development in the region’s economy.