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Illusion or Reality: Understanding the Trade Flow Between China and Sub-Saharan Africa

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  • Bamidele Adekunle
  • Ciliaka M. W. Gitau

Abstract

The authors examine the trade flow between China and Sub-Saharan Africa (SSA) with the use of the gravity model. The authors examine the impact that variables such as gross domestic product (GDP), distance, foreign direct investment (FDI), inflation, exchange rate, and GDP per capita have on trade flow between China and SSA and vice versa. The authors also examine how the trade flow of oil-rich countries is affected by trading with China while considering the interactions with other macroeconomic variables. The specific objectives are to assess the trade flow between China and SSA; identify the variables that predict trade flow from China to SSA and vice versa; examine the trade flow between oil-rich SSA countries (Angola, Equatorial Guinea, Nigeria, the Republic of Congo and Sudan) and China; and develop desirable policies that will enhance China--SSA trade while protecting the industries in SSA. The result of this article improves understanding of why Sino--Africa trade is an illusion that is gradually becoming a reality.

Suggested Citation

  • Bamidele Adekunle & Ciliaka M. W. Gitau, 2013. "Illusion or Reality: Understanding the Trade Flow Between China and Sub-Saharan Africa," Journal of African Business, Taylor & Francis Journals, vol. 14(2), pages 117-126, August.
    • Handle: RePEc:taf:wjabxx:v:14:y:2013:i:2:p:117-126
    DOI: 10.1080/15228916.2013.804361
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    References listed on IDEAS

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    1. 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.
    2. Alan V. Deardorff, 2011. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," World Scientific Book Chapters, in: Robert M Stern (ed.), Comparative Advantage, Growth, And The Gains From Trade And Globalization A Festschrift in Honor of Alan V Deardorff, chapter 24, pages 267-293, World Scientific Publishing Co. Pte. Ltd..
    3. Haq, Zahoor Ul & Meilke, Karl D. & Cranfield, John A.L., 2011. "The Gravity Model and the Problem of Zero's in Agrifood Trade," Working Papers 116851, Canadian Agricultural Trade Policy Research Network.
    4. Cardamone, Paola, 2007. "A Survey of the Assessments of the Effectiveness of Preferential Trade Agreements using Gravity Models," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 60(4), pages 421-473.
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    Cited by:

    1. Simplice A. Asongu & Gilbert A.A. Aminkeng, 2013. "The economic consequences of China--Africa relations: debunking myths in the debate," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 11(4), pages 261-277, November.
    2. Simplice A. Asongu & Paul N. Acha-Anyi, 2020. "A survey on the Washington Consensus and the Beijing Model: reconciling development perspectives," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 67(2), pages 111-129, June.
    3. Simplice Asongu & Jacinta C. Nwachukwu & Gilbert A. A. Aminkeng, 2018. "Lessons from a Survey of China’s Economic Diplomacy," Working Papers of the African Governance and Development Institute. 18/009, African Governance and Development Institute..
    4. NGUENA Christian-Lambert, 2014. "External Debt Origin, Capital Flight and Poverty Reduction in the Franc Zone: Does the Economic Consequences of Sino-African Relationship matter?," Working Papers of the African Governance and Development Institute. 14/016, African Governance and Development Institute..
    5. Asongu, Simplice A, 2014. "A Development Consensus reconciling the Beijing Model and Washington Consensus: Views and Agenda," MPRA Paper 58757, University Library of Munich, Germany.
    6. 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.
    7. Simplice Asongu, 2014. "Sino-African relations: a review and reconciliation of dominant schools of thought," Working Papers of the African Governance and Development Institute. 14/037, African Governance and Development Institute..
    8. Abdelaaziz Aït Ali & Rim Berahab, 2018. "Trade Integration in the Economic Community of West African States: Assessing Constraints and Opportunities Using an Augmented Gravity Model," Research papers & Policy papers 1817, Policy Center for the New South.
    9. Simplice A. Asongu & Jacinta C. Nwachukwu & Gilbert A. A. Aminkeng, 2018. "Lessons from a Survey of China’s Economic Diplomacy," Research Africa Network Working Papers 18/009, Research Africa Network (RAN).
    10. Simplice A. Asongu & Jacinta C. Nwachukwu & Gilbert A. A. Aminkeng, 2014. "China’s Strategies in Economic Diplomacy: A Survey of Updated Lessons for Africa, the West and China," Research Africa Network Working Papers 14/036, Research Africa Network (RAN).
    11. Simplice Asongu & Jacinta C. Nwachukwu & Gilbert A. A. Aminkeng, 2014. "China’s Strategies in Economic Diplomacy: A Survey of Updated Lessons for Africa, the West and China," Working Papers of the African Governance and Development Institute. 14/036, African Governance and Development Institute..
    12. Mileris, Ričardas, 2023. "International Trade Between European Union and Africa: Current Trends and Economic Factors of Intercontinental Business Activity," African Journal of Economic Review, African Journal of Economic Review, vol. 11(1), January.
    13. Bonga-Bonga, Lumengo & Biyase, Mduduzi, 2018. "The impact of Chinese textile imports on employment and value added in the manufacturing sector of the South African economy," MPRA Paper 88181, University Library of Munich, Germany.
    14. Zhijie Guan & Jim Kwee Fat Ip Ping Sheong, 2020. "Determinants of bilateral trade between China and Africa: a gravity model approach," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 47(5), pages 1015-1038, April.

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