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The Impact of China – African trade on economic growth of African countries

Author

Listed:
  • Enock Mwakalila
  • Joseph AKA
  • Tawanda Mukazhi

Abstract

There is no doubt that trade play a major role in economic growth and development of the country. But this notion has met with critical debate and controversies on the influence of trade on improving economic growth between countries, with some studied arguing that trade can actually harm the economy of at least one of the two countries. The trade between china and Africa is no exception to this. Therefore this study empirically analyzed the impact of trade between china and Africa on the economic growth of African countries. The panel data involving 41 African countries spanning 24 years (1992-2016) were collected and analyzed through pooled OLS, fixed effect and Arellano-Bond/Blundell-Bond models. The results showed that in all estimation techniques African trade with china appeared to benefit the former on improving its economic growth.

Suggested Citation

  • Enock Mwakalila & Joseph AKA & Tawanda Mukazhi, 2018. "The Impact of China – African trade on economic growth of African countries," International Journal of Science and Business, IJSAB International, vol. 2(2), pages 260-272.
  • Handle: RePEc:aif:journl:v:2:y:2017:i:2:p:260-272
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    References listed on IDEAS

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    1. Adedoyin Isola Lawal & Tony I. Nwanji & Abiola Asaleye & Victor Ahmed, 2016. "Economic growth, financial development and trade openness in Nigeria: An application of the ARDL bound testing approach," Cogent Economics & Finance, Taylor & Francis Journals, vol. 4(1), pages 1258810-125, December.
    2. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    3. Sanika Sulochani Ramanayake & Keun Lee, 2015. "Does openness lead to sustained economic growth? Export growth versus other variables as determinants of economic growth," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 20(3), pages 345-368, July.
    4. Yaya Keho, 2017. "The impact of trade openness on economic growth: The case of Cote d’Ivoire," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1332820-133, January.
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