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Private Chinese Investment in Africa: Myths and Realities
Author(s) -
Shen Xiaofang
Publication year - 2015
Publication title -
development policy review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.671
H-Index - 61
eISSN - 1467-7679
pISSN - 0950-6764
DOI - 10.1111/dpr.12093
Subject(s) - restructuring , investment (military) , china , government (linguistics) , private sector , business , foreign direct investment , phenomenon , market economy , economic restructuring , economic policy , economics , economic growth , development economics , finance , political science , politics , linguistics , philosophy , physics , quantum mechanics , law , macroeconomics
Private Chinese outbound investment, not as well‐known as government‐led investment, offers special opportunities and challenges for Africa today. The significance of Chinese private‐sector investment is already visible in the burgeoning manufacturing sector in some parts of Africa, and the trend will continue to grow in the near future. The underlying force behind this trend is the increased pressure of industrial restructuring in coastal China, which drives some labour‐intensive firms to relocate to other parts of the developing world. African host‐country governments can respond to this phenomenon with proactive development policies and strategies to maximise private Chinese investment for the benefit of their own economies.