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China’s role in mitigating poverty and inequality in Africa: an empirical query

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  • Tam NguyenHuu
  • Jörg Schwiebert

Abstract

Using data from 1995 to 2017, this article shows that China plays a positive role in mitigating poverty and inequality in Africa. Namely, imports from China, especially imports of machinery and equipment but not manufactured goods, alleviate substantially poverty in the region. In addition, China’s foreign direct investment (FDI) and China’s engagement in infrastructure projects in the continent help not only eradicate poverty, but also narrow income inequality. However, total exports or exports of raw materials and fuels to China are irrelevant to income distribution. We also compare these impacts with the impacts of economic links with the United States (US) and find insignificant effects of the US’s imports and FDI on income distribution but some positive effects of exports to the US on poverty in Africa. Our findings are robust when both the fractional nature of poverty and inequality indices and their correlation are taken into account.

Suggested Citation

  • Tam NguyenHuu & Jörg Schwiebert, 2019. "China’s role in mitigating poverty and inequality in Africa: an empirical query," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 24(4), pages 645-669, October.
    • Handle: RePEc:taf:rjapxx:v:24:y:2019:i:4:p:645-669
    DOI: 10.1080/13547860.2019.1632645
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    Cited by:

    1. Stephen Dauda, Rasaki & Joel Oyeleke, Olusola, 2021. "Poverty And Inequality: The Challenges To Sustainable Development In Nigeria," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 8(2), pages 1-16, June.
    2. Sargis Karavardanyan, 2022. "Short-Term Harm, Long-Term Prosperity? Democracy, Corruption and Foreign Direct Investments in Sino-African Economic Relations," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(3), pages 417-486, September.

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