IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/122001.html
   My bibliography  Save this paper

Learning along the Digital Silk Road? Technology transfer, power, and Chinese ICT corporations in North Africa

Author

Listed:
  • El Kadi, Tin

Abstract

While much attention has been paid to how China’s rise as a digital superpower could threaten US hegemony over cyberspace, much less has been written on what the Digital Silk Road, or the presence of Chinese tech firms in developing countries more broadly, means for technological upgrading and development. This article contributes to filling this gap by investigating the technology spillovers emanating from two Chinese tech giants – Huawei and ZTE – in Algeria and Egypt. Using a political economy framework that combines insights from structuralist economic development and techno-politics and drawing on over 70 semi-structured interviews and field-observations, it argues that despite localizing activities that bear the promise of generating significant linkages, the two Chinese tech firms created no meaningful learning opportunities for domestic entities that contribute to technological upgrading. What could at first seem like developmental connections that promote technology transfers are found to be linkages diffusing Chinese infrastructures, hardware, software, processes, and standards that shape distinct digital systems. Without pro-active policies from host governments, the Digital Silk Road risks creating new technological dependencies; locking local ICT actors into activities and relationships captured and defined by Chinese tech giants.

Suggested Citation

  • El Kadi, Tin, 2024. "Learning along the Digital Silk Road? Technology transfer, power, and Chinese ICT corporations in North Africa," LSE Research Online Documents on Economics 122001, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:122001
    as

    Download full text from publisher

    File URL: http://eprints.lse.ac.uk/122001/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Richard Kneller & Mauro Pisu, 2007. "Industrial Linkages and Export Spillovers from FDI," The World Economy, Wiley Blackwell, vol. 30(1), pages 105-134, January.
    2. Ockwell, David G. & Watson, Jim & MacKerron, Gordon & Pal, Prosanto & Yamin, Farhana, 2008. "Key policy considerations for facilitating low carbon technology transfer to developing countries," Energy Policy, Elsevier, vol. 36(11), pages 4104-4115, November.
    3. Roger Smeets, 2008. "Collecting the Pieces of the FDI Knowledge Spillovers Puzzle," The World Bank Research Observer, World Bank, vol. 23(2), pages 107-138, March.
    4. Markusen, James R. & Venables, Anthony J., 1999. "Foreign direct investment as a catalyst for industrial development," European Economic Review, Elsevier, vol. 43(2), pages 335-356, February.
    5. Guimón, José & Chaminade, Cristina & Maggi, Claudio & Salazar-Elena, Juan Carlos, 2018. "Policies to Attract R&D-related FDI in Small Emerging Countries: Aligning Incentives With Local Linkages and Absorptive Capacities in Chile," Journal of International Management, Elsevier, vol. 24(2), pages 165-178.
    6. Iršová, Zuzana & Havránek, Tomáš, 2013. "Determinants of Horizontal Spillovers from FDI: Evidence from a Large Meta-Analysis," World Development, Elsevier, vol. 42(C), pages 1-15.
    7. Autio, Erkko & Kenney, Martin & Mustar, Philippe & Siegel, Don & Wright, Mike, 2014. "Entrepreneurial innovation: The importance of context," Research Policy, Elsevier, vol. 43(7), pages 1097-1108.
    8. Liu, Zhiqiang, 2008. "Foreign direct investment and technology spillovers: Theory and evidence," Journal of Development Economics, Elsevier, vol. 85(1-2), pages 176-193, February.
    9. Blalock, Garrick & Gertler, Paul J., 2008. "Welfare gains from Foreign Direct Investment through technology transfer to local suppliers," Journal of International Economics, Elsevier, vol. 74(2), pages 402-421, March.
    10. Lutao Ning & Fan Wang, 2018. "Does FDI Bring Environmental Knowledge Spillovers to Developing Countries? The Role of the Local Industrial Structure," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(2), pages 381-405, October.
    11. Binyam Afewerk Demena & Peter A. G. van Bergeijk, 2019. "Observing FDI spillover transmission channels: evidence from firms in Uganda," Third World Quarterly, Taylor & Francis Journals, vol. 40(9), pages 1708-1729, September.
    12. Jacob Rubæk Holm & Bram Timmermans & Christian Richter Østergaard & Alex Coad & Nicola Grassano & Antonio Vezzani, 2020. "Labor mobility from R&D-intensive multinational companies: implications for knowledge and technology transfer," The Journal of Technology Transfer, Springer, vol. 45(5), pages 1562-1584, October.
    13. James A. Cunningham & Matthias Menter & Chris Young, 2017. "A review of qualitative case methods trends and themes used in technology transfer research," The Journal of Technology Transfer, Springer, vol. 42(4), pages 923-956, August.
    14. Beata Smarzynska Javorcik, 2004. "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages," American Economic Review, American Economic Association, vol. 94(3), pages 605-627, June.
    15. Henry Tugendhat, 2021. "Connection issues: a study on the limitations of knowledge transfer in Huawei’s African training centres," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 19(4), pages 359-385, October.
    16. Blomstrom, Magnus & Sjoholm, Fredrik, 1999. "Technology transfer and spillovers: Does local participation with multinationals matter?1," European Economic Review, Elsevier, vol. 43(4-6), pages 915-923, April.
    17. Kamal Saggi, 2002. "Trade, Foreign Direct Investment, and International Technology Transfer: A Survey," The World Bank Research Observer, World Bank, vol. 17(2), pages 191-235, September.
    18. Tugendhat, Henry, 2020. "How Huawei succeeds in Africa: Training and knowledge transfers in Kenya and Nigeria," SAIS-CARI Working Papers 2020/34, Johns Hopkins University, School of Advanced International Studies (SAIS), China Africa Research Initiative (CARI).
    19. Fu, Xiaolan & Pietrobelli, Carlo & Soete, Luc, 2011. "The Role of Foreign Technology and Indigenous Innovation in the Emerging Economies: Technological Change and Catching-up," World Development, Elsevier, vol. 39(7), pages 1204-1212, July.
    20. Chan Swee Lean, 2001. "Empirical tests to discern linkages between construction and other economic sectors in Singapore," Construction Management and Economics, Taylor & Francis Journals, vol. 19(4), pages 355-363.
    21. Xiaming Liu & Chengang Wang & Yingqi Wei, 2009. "Do local manufacturing firms benefit from transactional linkages with multinational enterprises in China?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(7), pages 1113-1130, September.
    22. Tsui, Benjamin, 2016. "Do Huawei's Training Programs and Centers Transfer Skills to Africa?," SAIS-CARI Policy Briefs 14/2016, Johns Hopkins University, School of Advanced International Studies (SAIS), China Africa Research Initiative (CARI).
    23. Haddad, Mona & Harrison, Ann, 1993. "Are there positive spillovers from direct foreign investment? : Evidence from panel data for Morocco," Journal of Development Economics, Elsevier, vol. 42(1), pages 51-74, October.
    24. Matija Rojec & Mark Knell, 2018. "Why Is There A Lack Of Evidence On Knowledge Spillovers From Foreign Direct Investment?," Journal of Economic Surveys, Wiley Blackwell, vol. 32(3), pages 579-612, July.
    25. Tugendhat, Henry, 2020. "How Huawei Succeeds in Africa: Training and Knowledge Transfers in Kenya and Nigeria," SAIS-CARI Policy Briefs 41/2020, Johns Hopkins University, School of Advanced International Studies (SAIS), China Africa Research Initiative (CARI).
    Full references (including those not matched with items on IDEAS)

    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. Neil Foster-McGregor, 2012. "Innovation and Technology Transfer across Countries," wiiw Research Reports 380, The Vienna Institute for International Economic Studies, wiiw.
    2. Yoshimichi Murakami & Keijiro Otsuka, 2020. "Governance, Information Spillovers, and Productivity of Local Firms: Toward an Integrated Approach to Foreign Direct Investment and Global Value Chains," The Developing Economies, Institute of Developing Economies, vol. 58(2), pages 134-174, June.
    3. Dyah Wulan Sari & Noor Aini Khalifah & Suyanto Suyanto, 2016. "The spillover effects of foreign direct investment on the firms’ productivity performances," Journal of Productivity Analysis, Springer, vol. 46(2), pages 199-233, December.
    4. Lim, King Yoong, 2019. "Industrial Transformation With Heterogeneous Labor And Foreign Experts," Macroeconomic Dynamics, Cambridge University Press, vol. 23(8), pages 3225-3266, December.
    5. Yi Zhang, 2019. "Institutions, Firm Characteristics, and FDI Spillovers," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 55(5), pages 1109-1136, April.
    6. Hallin, Christina & Holmström Lind, Christine, 2012. "Revisiting the external impact of MNCs: An empirical study of the mechanisms behind knowledge spillovers from MNC subsidiaries," International Business Review, Elsevier, vol. 21(2), pages 167-179.
    7. Seda Köymen Özer & Selin Sayek Böke, 2017. "The Characteristics of Domestic Firms: Materializing Productivity Spillovers from FDI," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 53(11), pages 2562-2584, November.
    8. Sara L. McGaughey & Pascalis Raimondos & Lisbeth Cour, 0. "Foreign influence, control, and indirect ownership: Implications for productivity spillovers," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-22.
    9. Todo, Yasuyuki & Zhang, Weiying & Zhou, Li-An, 2009. "Knowledge spillovers from FDI in China: The role of educated labor in multinational enterprises," Journal of Asian Economics, Elsevier, vol. 20(6), pages 626-639, November.
    10. Sara L. McGaughey & Pascalis Raimondos & Lisbeth Cour, 2020. "Foreign influence, control, and indirect ownership: Implications for productivity spillovers," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1391-1412, December.
    11. Sajid Anwar & Sizhong Sun, 2019. "Firm heterogeneity and FDI-related productivity spillovers: A theoretical investigation," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 28(1), pages 1-10, January.
    12. Bin Ni & Hayato Kato, 2020. "Do vertical spillovers differ by investors’ productivity? Theory and evidence from Vietnam," Review of Development Economics, Wiley Blackwell, vol. 24(3), pages 1046-1072, August.
    13. Sara L. McGaughey & Pascalis Raimondos & Lisbeth La Cour, 2018. "What is a Foreign Firm? Implications for Productivity Spillovers," CESifo Working Paper Series 7109, CESifo.
    14. Andrés Barge‐Gil & Alberto López & Ramón Núñez‐Sánchez, 2020. "Technological spillovers from multinational firms," The World Economy, Wiley Blackwell, vol. 43(12), pages 3184-3202, December.
    15. Yoshimichi Murakami & Keijiro Otsuka, 2017. "A Review of the Literature on Productivity Impacts of Global Value Chains and Foreign Direct Investment: Towards an Integrated Approach," Discussion Paper Series DP2017-19, Research Institute for Economics & Business Administration, Kobe University, revised Aug 2019.
    16. Gustavo Canavire-Bacarreza & Luis Castro Peñarrieta, 2021. "Can licensing induce productivity? Exploring the IPR effect," Empirical Economics, Springer, vol. 61(2), pages 549-586, August.
    17. Gui-Diby, Steve Loris & Renard, Mary-Françoise, 2015. "Foreign Direct Investment Inflows and the Industrialization of African Countries," World Development, Elsevier, vol. 74(C), pages 43-57.
    18. Jordaan,Jacob Arie & Douw,Willem & Qiang,Zhenwei, 2020. "Multinational Corporation Affiliates, Backward Linkages, and Productivity Spillovers in Developing and Emerging Economies : Evidence and Policy Making," Policy Research Working Paper Series 9364, The World Bank.
    19. Li, Qian & Xue, Qiuzhi & Truong, Yann & Xiong, Jie, 2018. "MNCs' industrial linkages and environmental spillovers in emerging economies: The case of China," International Journal of Production Economics, Elsevier, vol. 196(C), pages 346-355.
    20. Jitao Tang & Rosanne Altshuler, 2015. "The Spillover Effects Of Outward Foreign Direct Investment On Home Countries: Evidence From The United States," Departmental Working Papers 201501, Rutgers University, Department of Economics.

    More about this item

    Keywords

    Algeria; Chinese ICT firms; digital transition; Egypt; linkages; technology transfer; techno-politics;
    All these keywords.

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:ehl:lserod:122001. 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: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    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.