African Economies in the Shadow of China: Effects of Bilateral Trade Structure on Economic Growth in Africa
| Date | 01 February 2020 |
| DOI | 10.1177/0015732519886791 |
| Author | Jean-Claude Maswana |
| Published date | 01 February 2020 |
| Subject Matter | Articles |
African Economies in
the Shadow of China:
Effects of Bilateral
Trade Structure on
Economic Growth
in Africa
Jean-Claude Maswana1
Abstract
This study aimed at assessing the effects of bilateral trade intensity by export
categories in the China–Africa trade links on economic growth in Africa, by using
a production function approach in a panel system GMM estimator. The findings
suggest that conditional on the level of the logistics index and China’s FDI to
Africa, economic growth tends to be greater in countries with higher index of
trade intensity in manufactured exports to China. Another noticeable finding is
that the potential contribution of manufactured exports to economic growth is
higher than that of primary exports; African countries are constrained in their
trade expansion with China by low-logistics quality. Surprisingly, the current
logistics infrastructure, as low quality as they are, remain somehow adequate for
primary commodity exports to China.
JEL Codes: F14, F43, O19, O47, O55
Keywords
International trade, economic grwoth, Africa, China
Introduction
Over the 2000–2015 period, Africa’s international trade volume has grown faster
than the region’s economic growth. This fast-growing trade associated with China
is bringing both challenges and opportunities for African economies that are
Article
1 Graduate School of Economics, Ritsumeikan University, Kusatsu, Shiga, Japan.
Corresponding author:
Jean-Claude Maswana, Graduate School of Economics, Ritsumeikan University, Kusatsu, Shiga 525-8577,
Japan.
E-mail: maswana@fc.ritsumei.ac.jp
Foreign Trade Review
55(1) 80–92, 2020
© 2020 Indian Institute of
Foreign Trade
Reprints and permissions:
in.sagepub.com/journals-permissions-india
DOI: 10.1177/0015732519886791
journals.sagepub.com/home/ftr
To continue reading
Request your trial