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Will the World Bank's Vision Materialize? Relocating China's Factories to Sub-Saharan Africa, Flying-Geese Style

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  • Ozawa Terutomo

    (Colorado State University)

  • Bellak Christian

    (Vienna University of Economics and Business)

Abstract

China has emerged as the most proactive partner for Africa's growth by offering economic aid, investing in development projects in resource extraction and infrastructure building, and expanding trade. In this regard, a number of studies have recently explored China's growing--yet still nascent--manufacturing investments in sub-Saharan Africa, which the World Bank hopes to see further expanded so as to ignite local industrialization. These studies look mainly at the Africa-side (host) conditions. In contrast, this paper stresses China-side (home) factors and examines the institutional issues involved in this hoped-for scheme of industrial transplantation. The central question addressed is whether the World Bank's wish will actually come true. China's potential in this scenario is assessed in terms of the "flying-geese" growth model that explains how comparatively disadvantaged industries in such a rapidly catching-up economy as China's may be transplanted overseas. This article concludes that at the moment, China's capacity to transform the sub-Saharan region into a vibrant manufacturing base via foreign direct investment (FDI) is still underdeveloped and quite limited.

Suggested Citation

  • Ozawa Terutomo & Bellak Christian, 2011. "Will the World Bank's Vision Materialize? Relocating China's Factories to Sub-Saharan Africa, Flying-Geese Style," Global Economy Journal, De Gruyter, vol. 11(3), pages 1-18, September.
    • Handle: RePEc:bpj:glecon:v:11:y:2011:i:3:n:6
    DOI: 10.2202/1524-5861.1764
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    References listed on IDEAS

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    1. Jing Gu, 2009. "China's Private Enterprises in Africa and the Implications for African Development," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 21(4), pages 570-587, September.
    2. Farole, Thomas & Brautigam, Deborah & Xiaoyang, Tang, 2010. "China’s Investment in African Special Economic Zones: Prospects, Challenges, and Opportunities," World Bank - Economic Premise, The World Bank, issue 5, pages 1-6, March.
    3. Kojima, Kiyoshi, 1975. "International Trade and Foreign Investment : Substitutes or Complements," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 16(1), pages 1-12, June.
    4. Harry G. Broadman, 2007. "Africa's Silk Road : China and India's New Economic Frontier," World Bank Publications - Books, The World Bank Group, number 7186.
    5. Terutomo Ozawa, 2009. "The Rise of Asia," Books, Edward Elgar Publishing, number 13084.
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    Cited by:

    1. Altenburg, Tilman & Chen, Xiao & Lütkenhorst, Wilfried & Staritz, Cornelia & Whitfield, Lindsay, 2020. "Exporting out of China or out of Africa? Automation versus relocation in the global clothing industry," IDOS Discussion Papers 1/2020, German Institute of Development and Sustainability (IDOS).
    2. Amendolagine, Vito & Boly, Amadou & Coniglio, Nicola Daniele & Prota, Francesco & Seric, Adnan, 2013. "FDI and Local Linkages in Developing Countries: Evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 50(C), pages 41-56.
    3. Deborah Brautigam & Tang Xiaoyang & Ying Xia, 2018. "What Kinds of Chinese ‘Geese’ Are Flying to Africa? Evidence from Chinese Manufacturing Firms," Journal of African Economies, Centre for the Study of African Economies, vol. 27(suppl_1), pages 29-51.
    4. Peter Draper & Andreas Freytag & Sören Scholvin & Luong Thanh Tran, 2016. "Is a ‘Factory Southern Africa’ Feasible?," World Bank Publications - Reports 23788, The World Bank Group.
    5. Peter Draper & Andreas Freytag & Sören Scholvin & Luong Thanh Tran, 2016. "Is a 'Factory Southern Africa' Feasible? Harnessing Flying Geese to the South African Gateway," CESifo Working Paper Series 5867, CESifo.
    6. Faroque, Anisur R. & Morrish, Sussie C. & Kuivalainen, Olli & Sundqvist, Sanna & Torkkeli, Lasse, 2021. "Microfoundations of network exploration and exploitation capabilities in international opportunity recognition," International Business Review, Elsevier, vol. 30(1).

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