Private Chinese Investment in Africa: Myths and Realities

Shen, Xiaofang

doi:10.1111/dpr.12093

Cited by 93 publications

(110 citation statements)

References 10 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…7 Our work also contributes to a small but growing literature on the economic effects of Chinese FDI and other kinds of economic engagements in Africa (Brautigam, 2003;Lederman, Mengistae and Xu, 2003;Morris and Einhorn, 2008;Rui, 2010;Rotunno, Vezina, and Wang, 2012;Shen, 2013;Harrison, Lin and Zhu, 2014). 8 The findings have been mixed.…”

mentioning

confidence: 87%

See 1 more Smart Citation

Why Is China Investing in Africa? Evidence from the Firm Level

Chen

Dollar

Tang

2016

World Bank Econ Rev

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. China's increased trade with and investment in Africa have boosted the continent's economic growth but have also generated considerable controversy. In this paper we investigate China's outward direct investment ODI in Africa using macro and micro data. The aggregate data on China's ODI in African countries reveal that China's share of the stock of foreign investment is small, though growing rapidly. China's attraction to resource-rich countries is no different from Western investment. China's overall ODI is uncorrelated with a measure of rule of law, whereas Western investment favors the better governance environments. As a result, Chinese investment in strong and weak governance environments is about the same, but its share of foreign investment is higher in the weak governance states. The micro data that we use is MOFCOM's database on all registered Chinese firms investing in Africa between 1998 and 2012. We use key words in project descriptions to code the investments into 25 sectors. This database captures the small and medium private firms investing in Africa. Contrary to common perceptions, there are few projects in natural resource sectors. Most projects are in services, with a significant number in manufacturing as well. In our country-sector-level regressions based on firms' transactionlevel data, we find that Chinese ODI, both horizontal and vertical, is profit-driven, just like investors from other countries. In particular, our regressions show that Chinese ODI is relatively more concentrated in skill-intensive sectors in skill-abundant countries, but in capital-intensive sectors in capital-scarce countries. These patterns are mostly observed in politically unstable countries, suggesting stronger incentives to seek profits in tougher environments. The predominance of Chinese ODI in services appears to be widespread across host countries, independent of host countries' market size and trade costs, but is negatively correlated with their skill abundance. Terms of use: Documents inJEL-Codes: F100, F200, F600.

show abstract

mentioning

confidence: 87%

“…Furthermore, according to Shen (2013), one of the first papers to use this firm level data set of Chinese ODI, a large majority of the firms in the database are private firms, especially since 2000.…”

Section: A Transaction-level Odi Datamentioning

confidence: 99%

Why Is China Investing in Africa? Evidence from the Firm Level

Chen

Dollar

Tang

2016

World Bank Econ Rev

View full text Add to dashboard Cite

show abstract

“…Although inadequate transportation infrastructure has been a major driver of Africa's inability to attract major foreign investments (Aker and Mbiti, 2010;The Economist, 2008), significant progress has been made in recent years, particularly in the air transport sector, and projections are that the railway sector will receive major public-private sector investments (Shen, 2015). For example, while in the past poor flight connectivity makes air travel in Sub-Sahara Africa hard and costly, the open-air policy in many African markets has significantly reduced the cost of travel in many Sub-Saharan African markets (The Economist, 2008).…”

Section: An Emerging Africa: Trends Challenges and International Marmentioning

confidence: 99%

Africa rising in an emerging world: an international marketing perspective

Amankwah‐Amoah

Boso

Debrah

2018

IMR

View full text Add to dashboard Cite

Purpose: The primary goal of this introductory article is to highlight important contemporary themes in international marketing strategy from the perspective of Sub-Saharan African firms.Design/methodology/approach: The approach adopted is a review and synopsis of the existing body of research on international marketing research in Sub-Saharan African, and a discussion of the manuscripts included in the special issue. Findings:International marketing in Sub-Sahara Africa is growing steadily, driven largely by rapid changes in socio-economic and demographic characteristics of consumers in this market. The growing appetite of multinational enterprises to explore new growth opportunities on this continent and the increasing intra-Africa cross-border transactions is driving unique approaches to international marketing that are predicated on using non-traditional means to produce, communicate and distribute products and services. Research limitations/implications:While the international marketing opportunities and challenges discussed in this article are not exhaustive, the paper highlights important research themes that need consideration regarding international marketing research in Sub-Saharan Africa.Originality/value: This introductory article emphasizes the unique international business landscape in Sub-Saharan Africa and discusses its international marketing strategy implications. The article further draws attention to a number of unanswered research questions that require additional research, and thus bring Sub-Saharan Africa to international marketing scholarly enquiry.

show abstract

“…The majority of all such Chinese FDI into Africa is loan financed (MOFCOM 2013). It is noted that since government statistics have been found to underestimate the size of outward FDI (Shen 2015), the actual flow and stock levels are probably significantly higher than these official statistics. Non-commodity investments in general-including in wholesale trade, retail catering and textiles-often fall outside China's official investment statistics, the reliability of which generally remain of concern (Rosen and Hanemann 2009: 3).…”

Section: China-africa Economics Overviewmentioning

confidence: 88%

Boom to Cusp

Johnston¹

2015

China's Domestic Transformation in a Global Context

View full text Add to dashboard Cite

Private Chinese Investment in Africa: Myths and Realities

Cited by 93 publications

References 10 publications

Why Is China Investing in Africa? Evidence from the Firm Level

Why Is China Investing in Africa? Evidence from the Firm Level

Africa rising in an emerging world: an international marketing perspective

Boom to Cusp

Contact Info

Product

Resources

About