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African Economies in the Shadow of China: Effects of Bilateral Trade Structure on Economic Growth in Africa

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  • Jean-Claude Maswana

Abstract

This study aimed at assessing the effects of bilateral trade intensity by export categories in the China–Africa trade links on economic growth in Africa, by using a production function approach in a panel system GMM estimator. The findings suggest that conditional on the level of the logistics index and China’s FDI to Africa, economic growth tends to be greater in countries with higher index of trade intensity in manufactured exports to China. Another noticeable finding is that the potential contribution of manufactured exports to economic growth is higher than that of primary exports; African countries are constrained in their trade expansion with China by low-logistics quality. Surprisingly, the current logistics infrastructure, as low quality as they are, remain somehow adequate for primary commodity exports to China. JEL Codes: F14, F43, O19, O47, O55

Suggested Citation

  • Jean-Claude Maswana, 2020. "African Economies in the Shadow of China: Effects of Bilateral Trade Structure on Economic Growth in Africa," Foreign Trade Review, , vol. 55(1), pages 80-92, February.
    • Handle: RePEc:sae:fortra:v:55:y:2020:i:1:p:80-92
    DOI: 10.1177/0015732519886791
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    More about this item

    Keywords

    International trade; economic grwoth; Africa; China;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • 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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