The Policy Challenge for Sub-Saharan Africa of Large-Scale Chinese FDI

Kaplinsky, Raphael and Morris, Mike (2010) The Policy Challenge for Sub-Saharan Africa of Large-Scale Chinese FDI. Elcano Newsletter (72). 8 p.. ISSN 1698-5184

[img]
Preview
PDF
Available under License Creative Commons Attribution Non-commercial.

Download (78kB) | Preview

Abstract

The existence of large state-owned Chinese firms and private investors engaged in investing primarily, but not exclusively, in resource and infrastructure sectors in SSA (Sub-Saharan Africa) is a major preoccupation in economic and political circles. In order to understand it, Chinese investment has to be differentiated into four different types, and its distinctive characteristic unpacked –ie, the bundling together of aid, trade and FDI (foreign direct investment)–. This has major policy implications for how SSA should relate to Chinese investors in order to maximise available opportunities. There is widespread economic and political interest in the impact of Chinese investment in Sub-Saharan Africa (SSA). This paper distinguishes between four different types of Chinese foreign direct investment (FDI), primarily focusing on SSA’s engagement with large state-owned Chinese firms investing in SSA’s resource and infrastructure sectors. Although there is a paucity of published research, it also provides evidence on private Chinese FDI in wholesale/retail, manufacturing, and services. The available evidence drawn from a variety of sources –macro, micro, firm surveys and country reports– on the extent of different types of Chinese investment is discussed. The distinctive character of large-scale state-owned Chinese investors is summed up in the bundling together of aid, trade and FDI, in contrast to traditional western trends which seek to unbundle these factors. The paper concludes that SSA countries should maximise the opportunities opened to them by their resource-base by adopting a similarly integrated and focused response to Chinese (and other large) investors who seek to draw on the continent’s natural resources.

Item Type: Article
Additional Information: Estudio sólo disponible en inglés
Uncontrolled Keywords: África Subsahariana
Subjects: INTERNATIONAL COOPERATION > INTERNATIONAL RELATIONS > ECONOMIC RELATIONS.
INTERNATIONAL COOPERATION > COUNTRIES AND REGIONS > AFRICA SOUTH OF SAHARA
INTERNATIONAL COOPERATION > COUNTRIES AND REGIONS > CHINA
PUBLIC FINANCE; BANKING; INTERNATIONAL MONETARY RELATIONS > CURRENCIES; FINANCING > DIRECT INVESTMENT.
PUBLIC FINANCE; BANKING; INTERNATIONAL MONETARY RELATIONS > INTERNATIONAL MONETARY SYSTEM > FOREIGN INVESTMENT.
Divisions: Real Instituto Elcano, RIE
Depositing User: Jorge Horcas Pulido
Date Deposited: 01 Apr 2012 13:41
Last Modified: 01 Apr 2012 13:41
URI: http://biblioteca.ribei.org/id/eprint/1971

Actions (login required)

View Item View Item