| By: |
Broich T.;
Szirmai A. (UNU-MERIT) |
| Abstract: |
This paper discusses the entry of China into the game of foreign finance in
Africa. It analyses the scope, destination and sectoral distribution of
Chinese financial flows and trade in comparison with Western patterns and
trends of aid, foreign direct investment FDI and trade. Chinas foreign aid and
manufacturing investment flow to Africas physical infrastructure and
productive sectors of agriculture and manufacturing fill the vacuum which
emerged when Western financial flows shifted to other sectors and activities.
In contrast, Chinas trade patterns with Africa highly resemble those of
Africas leading Western trading partners. Africa imports manufactured goods
and exports primary goods. Differences in relative factor endowments of
labour, capital and natural resources are largely responsible for the pattern
of Sino-African trade. |
| Keywords: |
Trade: General; International Investment; Long-term Capital Movements; Foreign Aid; International Relations and International Political Economy: General; International Linkages to Development; Role of International Organizations; Economywide Country Studies: Asia including Middle East; Economywide Country Studies: Africa; |
| JEL: |
F10 F21 F35 F50 O19 O53 O55 |
| Date: |
2014 |
| URL: |
http://d.repec.org/n?u=RePEc:unm:unumer:2014049&r=cna |