Open AccessChinese FDI for Infrastructure Development in Africa – Assessing the Impact of Cooperation
Author(s) -
Shujaa Waqar,
Saira Ahmed,
Iftikhar Badshah
Publication year - 2021
Publication title -
estudios de economía aplicada
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.123
H-Index - 6
eISSN - 1697-5731
pISSN - 1133-3197
DOI - 10.25115/eea.v39i2.3761
Subject(s) - china , foreign direct investment , dominance (genetics) , business , sample (material) , investment (military) , panel data , order (exchange) , developing country , globalization , empirical research , international trade , economic growth , development economics , international economics , economics , geography , political science , market economy , finance , biochemistry , chemistry , philosophy , macroeconomics , archaeology , chromatography , epistemology , politics , law , econometrics , gene
Globalization today is quite effectively governed by patterns defined by China’s dominance in global trade and commerce. China has started to correspond with numerous countries in order to build economic corridors. Historically, China has a keen interest in African countries where cheap workers and plentiful resources are available. This opportunity has been favourably received by the African countries. However, it has been observed from various sources that Chinese investment in Africa has been intended for exploiting the resources and the countries in Africa. This study aims to investigate the potential impact of unprecedented Chinese FDI on infrastructure development in selected African countries. The empirical analysis is conducted by using a panel data approach for 28 African countries spanning from 2003-15. These empirical estimations have been carried out through fixed effects technique. The findings of the study reveal that Chinese investment has a positive impact on infrastructure development in the sample countries. Based on study findings, it is safely concluded that Chinese investment and infrastructure development move parallel in the sample countries.