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Technological progress, worker efficiency, and growth in Africa: Does China's economy matter?

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  • Habyarimana, Jean-Baptiste
  • Opoku, Eric Evans Osei

Abstract

In the 21st century, the Sino–Africa relations are characterized by increasing levels of trade and investment. Additionally, African governments consider China a vital stakeholder in their plans to transform their economies through technology. This study empirically examines whether China's exports of information and communication technology and high-technology goods and foreign direct investment outflows stimulate growth in Africa. The results demonstrate that China's engagement in trade could lead to a positive and negative shift of steady-state position of real gross domestic product and technological progress, respectively, in Africa. These results predict that China's engagement will contribute to economic growth in African countries through increasing capital per worker efficiency but cause stagnation in their technological progress. Finally, one of the choices that African countries could make as they create policies to increase their technological progress is discussed.

Suggested Citation

  • Habyarimana, Jean-Baptiste & Opoku, Eric Evans Osei, 2018. "Technological progress, worker efficiency, and growth in Africa: Does China's economy matter?," China Economic Review, Elsevier, vol. 52(C), pages 151-164.
    • Handle: RePEc:eee:chieco:v:52:y:2018:i:c:p:151-164
    DOI: 10.1016/j.chieco.2018.07.004
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    Cited by:

    1. Van Rensburg, Nickey Janse & Telukdarie, Arnesh & Dhamija, Pavitra, 2019. "Society 4.0 applied in Africa: Advancing the social impact of technology," Technology in Society, Elsevier, vol. 59(C).
    2. Olufemi Adewale Aluko & George S. Chen & Eric Evans Osei Opoku, 2023. "Is foreign direct investment globalization‐induced or a myth? A tale of Africa," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(3), pages 2651-2663, July.
    3. Jean Baptiste Habyarimana & Vikas Kakkar, 2023. "Externally funded trade policy reforms and firm productivity: Evidence from a world database of reforms funded by foreign aid agencies," Kyklos, Wiley Blackwell, vol. 76(2), pages 196-222, May.
    4. Emma Serwaa Obobisa & Haibo Chen & Emmanuel Caesar Ayamba & Claudia Nyarko Mensah, 2021. "The Causal Relationship Between China-Africa Trade, China OFDI, and Economic Growth of African Countries," SAGE Open, , vol. 11(4), pages 21582440211, December.

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    More about this item

    Keywords

    Technology; Worker efficiency; Economic growth; Sino–Africa;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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