IDEAS home Printed from https://ideas.repec.org/a/kap/atlecj/v48y2020i3d10.1007_s11293-020-09674-2.html
   My bibliography  Save this article

Has Economic Growth of China and India Impacted African Economic Prosperity?

Author

Listed:
  • Azmat Gani

    (College of Economics and Political Science)

  • Nisar Ahmad

    (College of Economics and Political Science)

Abstract

This paper investigates whether the economic growth of China and India matters for the long-term economic prosperity of African nations. Annual World Bank data were used to determine the growth of African countries for the period from 2002 to 2016. The analytical framework includes the standard Barro growth regression model. The Arellano and Bond generalised method of moments estimation procedure was used to analyse the data, overcoming the issues of autocorrelation, heteroscedasticity and endogeneity. The findings based on the generalised method of moments estimation indicate that the economic growth of China, but not of India, had a statistically significant (p = 0.10) positive correlation with the economic growth of Africa. It is concluded that the economic growth of China assumed a significant decisive role in supporting African economic prosperity. Hence, Africa is likely to realise long-term beneficial growth and development effects by actively integrating with large economies, such as China.

Suggested Citation

  • Azmat Gani & Nisar Ahmad, 2020. "Has Economic Growth of China and India Impacted African Economic Prosperity?," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 48(3), pages 375-385, September.
    • Handle: RePEc:kap:atlecj:v:48:y:2020:i:3:d:10.1007_s11293-020-09674-2
    DOI: 10.1007/s11293-020-09674-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11293-020-09674-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11293-020-09674-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    3. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2016. "The Mobile Phone in the Diffusion of Knowledge for Institutional Quality in Sub-Saharan Africa," World Development, Elsevier, vol. 86(C), pages 133-147.
    4. Simplice A. Asongu & Jacinta C. Nwachukwu, 2016. "Foreign aid and governance in Africa," International Review of Applied Economics, Taylor & Francis Journals, vol. 30(1), pages 69-88, January.
    5. Robert J. Barro, 1998. "Determinants of Economic Growth: A Cross-Country Empirical Study," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522543, December.
    6. Simplice Asongu & Vanessa Tchamyou & Ndemaze Asongu & Nina Tchamyou, 2019. "Fighting terrorism in Africa: evidence from bundling and unbundling institutions," Empirical Economics, Springer, vol. 56(3), pages 883-933, March.
    7. Simplice Asongu, 2014. "African Development: Beyond Income Convergence," South African Journal of Economics, Economic Society of South Africa, vol. 82(3), pages 334-353, September.
    8. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
    9. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
    10. 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.
    11. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 407-443.
    12. Simplice Asongu & John Ssozi, 2016. "Sino-African Relations: Some Solutions and Strategies to the Policy Syndromes," Journal of African Business, Taylor & Francis Journals, vol. 17(1), pages 33-51, January.
    13. Javeria Maryam & Ashok Mittal, 2019. "An empirical analysis of India’s trade in goods with BRICS," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 66(4), pages 399-421, December.
    14. Mohamed Saadi, 2014. "Does foreign direct investment increase exports' productivity? Evidence from developing and emerging countries," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(4), pages 482-506, July.
    15. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    16. David Cass, 1965. "Optimum Growth in an Aggregative Model of Capital Accumulation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 32(3), pages 233-240.
    17. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    18. Ram, Rati, 1986. "Government Size and Economic Growth: A New Framework and Some Evidencefrom Cross-Section and Time-Series Data," American Economic Review, American Economic Association, vol. 76(1), pages 191-203, March.
    19. Jeffrey Kouton, 2019. "Relationship between economic freedom and inclusive growth: a dynamic panel analysis for sub-Saharan African countries," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 21(1), pages 143-165, June.
    20. Ahsan, Humna & Haque, M. Emranul, 2017. "Threshold effects of human capital: Schooling and economic growth," Economics Letters, Elsevier, vol. 156(C), pages 48-52.
    21. Donatella Saccone, 2017. "Economic growth in emerging economies: what, who and why," Applied Economics Letters, Taylor & Francis Journals, vol. 24(11), pages 800-803, June.
    22. Henry Karamuriro Tumwebaze & Alex Thomas Ijjo, 2015. "Regional Economic Integration and Economic Growth in the COMESA Region, 1980–2010," African Development Review, African Development Bank, vol. 27(1), pages 67-77, March.
    23. Kizito Uyi Ehigiamusoe & Hooi Hooi Lean & Chien-Chiang Lee, 2019. "Moderating effect of inflation on the finance–growth nexus: insights from West African countries," Empirical Economics, Springer, vol. 57(2), pages 399-422, August.
    24. Leonce Ndikumana & Theresa Mannah-Blankson, 2015. "Financing Domestic Investment in African Countries: Does the Source of Financing Matter?," Journal of African Development, African Finance and Economic Association (AFEA), vol. 17(2), pages 19-48.
    25. Adefeso, Hammed, 2018. "Corruption, Political Instability and Development Nexus in Africa: A Call for Sequential Policies Reforms," MPRA Paper 85277, University Library of Munich, Germany.
    26. Samuel Adams & Edem Kwame Mensah Klobodu, 2018. "Capital flows and economic growth revisited: evidence from five Sub-Saharan African countries," International Review of Applied Economics, Taylor & Francis Journals, vol. 32(5), pages 620-640, September.
    27. Paulo Drummond & Estelle Liu, 2015. "Africa’s Rising Exposure to China: How Large Are Spillovers Through Trade?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 21(3), pages 317-334, August.
    28. Samuel Adams & Daniel Sakyi & Eric Evans Osei Opoku, 2016. "Capital Inflows and Domestic Investment in Sub-Saharan Africa," Foreign Trade Review, , vol. 51(4), pages 328-343, November.
    29. Aziz N. Berdiev & James W. Saunoris, 2019. "Globalization and Informal Entrepreneurship: A Cross-Country Analysis," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 47(1), pages 65-80, March.
    30. George K. Zestos & Wei Guo & Ryan Patnode, 2018. "Determinants of Real Chinese GDP 1978–2014," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 46(2), pages 161-177, June.
    31. Augustin Kwasi Fosu, 2004. "Mapping Growth into Economic Development," American Journal of Economics and Sociology, Wiley Blackwell, vol. 63(5), pages 1173-1192, November.
    32. Hazwan Haini, 2019. "Internet penetration, human capital and economic growth in the ASEAN economies: evidence from a translog production function," Applied Economics Letters, Taylor & Francis Journals, vol. 26(21), pages 1774-1778, December.
    33. Christopher J. Boudreaux & Randall G. Holcombe, 2017. "Economic Institutions and the Durability of Democracy," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 45(1), pages 17-28, March.
    34. Mahmoud Arayssi & Ali Fakih & Nathir Haimoun, 2019. "Did the Arab Spring reduce MENA countries’ growth?," Applied Economics Letters, Taylor & Francis Journals, vol. 26(19), pages 1579-1585, November.
    35. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    36. Yasuo Nishiyama, 2019. "Causality between government spending and income: the case of Saudi Arabia," Applied Economics Letters, Taylor & Francis Journals, vol. 26(5), pages 433-435, March.
    37. N. Wenzel & B. Freund & O. Graefe, 2019. "Surviving in the BRICS: the struggle of South African business in coping with new partners and investors," International Review of Applied Economics, Taylor & Francis Journals, vol. 33(1), pages 51-70, January.
    38. Krugman, Paul & Venables, Anthony J, 1990. "Integration and the Competitiveness of Peripheral Industry," CEPR Discussion Papers 363, C.E.P.R. Discussion Papers.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Phan, Thuy Chung, 2023. "Energy prices volatility, natural resource policy-making and green economic recovery in post COVID-19 era: Evidence from BRICS countries," Resources Policy, Elsevier, vol. 87(PA).
    2. Li, Li, 2023. "Commodity prices volatility and economic growth: Empirical evidence from natural resources industries of China," Resources Policy, Elsevier, vol. 80(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Voxi Heinrich Amavilah & Antonio Rodríguez Andrés, 2024. "Knowledge Economy and the Economic Performance of African Countries: A Seemingly Unrelated and Recursive Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 110-143, March.
    2. Dimitrios Paparas & Christian Richter, 2015. "Fiscal policy and economic growth: Empirical evidence from the European Union," Working Papers 2015.06, International Network for Economic Research - INFER.
    3. Daniel Oto Peralías & Daniel Oto-Peralías & Diego Romero-Ávila, 2012. "Tracing the Link between Government Size and Growth: The Role of Public Sector Quality," EcoMod2012 4015, EcoMod.
    4. Simplice A. Asongu, 2023. "Mobile Phone Innovation and Doing Business in Sub-Saharan Africa," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 9(2), pages 238-269, July.
    5. Celine Bonnefond, 2014. "Growth Dynamics And Conditional Convergence Among Chinese Provinces: A Panel Data Investigation Using System Gmm Estimator," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(4), pages 1-25, December.
    6. Capolupo, Rosa, 2009. "The New Growth Theories and Their Empirics after Twenty Years," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-72.
    7. Dimitrios PAPARAS & Christian RICHTER & Alexandros PAPARAS, 2015. "Fiscal Policy and Economic Growth, Empirical Evidence in European Union," Turkish Economic Review, KSP Journals, vol. 2(4), pages 239-268, December.
    8. Halkos, George & Paizanos, Epameinondas, 2015. "Fiscal policy and economic performance: A review of the theoretical and empirical literature," MPRA Paper 67737, University Library of Munich, Germany.
    9. Asongu, Simplice & le Roux, Sara & Nwachukwu, Jacinta & Pyke, Chris, 2018. "The Mobile Phone as an Argument for Good Governance in Sub-Saharan Africa," MPRA Paper 89364, University Library of Munich, Germany.
    10. Simplice A. Asongu & Nicholas Biekpe, 2017. "Mobile Phone Innovation and Entrepreneurship in Sub-Saharan Africa," Research Africa Network Working Papers 17/023, Research Africa Network (RAN).
    11. Zaiter Lahimer, Mahjouba, 2011. "L’impact des entrées de capitaux privés sur la croissance économique dans les pays en développement," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/7670 edited by Sterdyniak, Henri.
    12. Ho Thuy Ai & Ping, Lin, 2018. "Impacts of fiscal policy on economic growth: Another look from institutional perspective," Economics Discussion Papers 2018-45, Kiel Institute for the World Economy (IfW Kiel).
    13. Simplice A. Asongu & Joseph Nnanna, 2019. "Dynamic Determinants of Access to Weapons: Global Evidence," Foreign Trade Review, , vol. 54(4), pages 334-354, November.
    14. Bloom, David E. & Canning, David & Kotschy, Rainer & Prettner, Klaus & Schünemann, Johannes, 2024. "Health and economic growth: Reconciling the micro and macro evidence," World Development, Elsevier, vol. 178(C).
    15. Rafiou Raphaël Bétila, 2021. "The impact of Ease of Doing Business on economic growth: a dynamic panel analysis for African countries," SN Business & Economics, Springer, vol. 1(10), pages 1-34, October.
    16. Lee, Angela Y. & Aaker, Jennifer L., 2006. "A Monte Carlo Study of Growth Regressions," Research Papers 1836r1, Stanford University, Graduate School of Business.
    17. Stimpfle, Alexander & Stadelmann, David, 2015. "The Impact of Fundamental Development Factors on Different Income Groups: International Evidence," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113128, Verein für Socialpolitik / German Economic Association.
    18. Olaoye, Olumide O. & Eluwole, Oluwatosin O. & Ayesha, Aziz & Afolabi, Olugbenga O., 2020. "Government spending and economic growth in ECOWAS: An asymmetric analysis," The Journal of Economic Asymmetries, Elsevier, vol. 22(C).
    19. Asongu, Simplice A. & Odhiambo, Nicholas M., 2020. "Foreign direct investment, information technology and economic growth dynamics in Sub-Saharan Africa," Telecommunications Policy, Elsevier, vol. 44(1).
    20. Asongu, Simplice A. & Nwachukwu, Jacinta C. & Orim, Stella-Maris I., 2018. "Mobile phones, institutional quality and entrepreneurship in Sub-Saharan Africa," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 183-203.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:atlecj:v:48:y:2020:i:3:d:10.1007_s11293-020-09674-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.