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Drivers Of China Foreign Direct Investment Into Africa

We find that economic size and macroeconomic stability are positively correlated with Chinese and global FDI in Africa. While private Chinese firms are becoming increasingly active globally, SOEs make up the lion’s share of OFDI in Africa. While these zones are mainly developed by Chinese firms, foreign enterprises are also welcome to establish operations in these zones. By contrast, FDI outflows from South Africa rebounded sharply to $4.4 billion, returning the country to the position of largest source country of FDI in Africa. weblink

Keywords: Foreign Direct Investment, China-Africa economic relations Suggested Citation: Suggested Citation Braga de Macedo, Jorge and Pereira, Luis Brites and Lopes, José Mário, Drivers of China’s Foreign Direct Investment into Africa Institutional variables, such as accountability and rule of law, are not significant in either case and the same can be said about FDI-aid complementarities. The region of North Africa is beginning to see signs of a revival in cross-border investment activities, after declines rooted in the area’s political turmoil in 2011. To decline or learn more, visit our Cookies page.

Of investment channelled to the two major oil-producing countries of the region, FDI to Ghana remained stable at $3.3 billion, but inflows to Nigeria declined by 21 per cent to $7.0 This policy was reaffirmed in the latest 12th FYP (2011-15), which calls for accelerating China’s “going-out” strategy in three parts: expand outward investment further; emphasize the equal importance of FDI in China For example, significant FDI was targeted at the expansion of the copper-cobalt Tenke Fungurume mine (Democratic Republic of the Congo).

On the positive side, mining interests in Mauritania helped that country’s inflows double to $1.2 billion, the report says.Central Africa saw its inflows rise to $10 billion, a record high, maintaining The PRC Ministry of Commerce is the lead governmental agency in this endeavor, allowing zone developers to apply for subsidies of up to 30 percent of zone planning and construction costs As a result, inflows to the region expanded from $4.5 billion in 2011 to $6.3 billion in 2012, the report says. Driven by a desire to secure natural resources and tap new markets, PRC state-owned enterprises (SOEs) have made large investments throughout Africa.

Special economic zones (SEZs) Through the 12th FYP and “going out” policy, the PRC government has supported Chinese enterprises in establishing a number of pilot SEZs throughout Africa. Between 2008 and 2012, the share of consumer-related industries in the value of greenfield investment projects in Africa grew from 7 per cent of the total to 23 per cent (figure Copyright 2012. https://www.aeaweb.org/conference/2015/retrieve.php?pdfid=1256 Registration on or use of this site constitutes acceptance of our Terms of Service and Privacy Policy.

The report notes that the 2012 figure is still much lower than the levels reached in Egypt before 2011.FDI flows to West Africa declined by 5 per cent to $16.8 billion, Register now Public User Your Account User Home Personal Info Affiliations Subscriptions My Papers My Briefcase Sign out Public User Advanced Search Download this Paper Open PDF in Browser Share: Permalink Mauritius: Jinfei, focusing on manufacturing (mainly textile, machinery, high-tech), and services (mostly tourism, finance, education). Here are the instructions how to enable JavaScript in your web browser.

FDI flows to Southern Africa fell sharply, however, from $8.7 billion in 2011 to $5.4 billion in 2012, even as some countries saw substantial increases. Conversely, the openness of the economy is a determinant for global FDI but not of Chinese FDI, which appears to favour closed economies possibly due to industrial organizational concerns. More refined governance indicators should be used to verify whether Chinese and global FDI into Africa remain indistinguishable on this score: we plan to do this in future research. The presence of oil is a determinant of Chinese FDI but not of global FDI into Africa.

Inflows to South Africa, which have tended to fluctuate greatly in recent years, dropped by 24 per cent in 2012, to $4.6 billion. Sign-Up Get the Slide Deck from Henry Blodget's IGNITION Presentation on the Future of Digital Read Business Insider On The Go Available on iOS or Android Find A Job Below are three examples of established SEZs, and the broad industry niche each zone supports: Zambia: Chambishi & Lusaka subzones, focusing on copper/cobalt processing and garments, food, appliances, tobacco, and electronics. Institutional variables, such as accountability and rule of law, are not significant in either case and the same can be said about FDI-aid complementarities.

Today, China not only recognizes Africa as a source of energy and natural resources but also as a rapidly expanding market for Chinese goods. Moreover, Africa represents an additional destination for Chinese manufacturing to move offshore as profit margins on the mainland deteriorate and the PRC government promotes policies seeking to move the Chinese economy FDI outflows from African countries almost tripled in 2012, to $14 billion, the report says. http://commsolv.com/drivers-of/drivers-of-economic-growth-in-china.php FEUNL Working Paper Series No. 544.

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XS () SM () MD () LG () Go EN FR ES Toggle navigation While these differences accord with intuition, we find no evidence for the claim that Chinese FDI in Africa is related to non-economic governance in a specific way that differs from global Much of this increase was accounted for by a turnaround in Egypt, where inflows climbed from a net divestment of $0.5 billion in 2011 to a positive $2.8 billion in 2012.

The presence of oil is a determinant of Chinese FDI but not of global FDI into Africa.

This page was processed by apollo3 in 0.172 seconds Markets BI Intelligence Events Trending Tech Insider Finance Politics Strategy Life Sports Video All × From To You have successfully emailed See all ›4 CitationsSee all ›15 ReferencesDownload citationShare Facebook Twitter Google+ LinkedIn Reddit Download full-text PDF Drivers of China’s Foreign Direct Investment into AfricaArticle · March 2009 with 48 ReadsDOI: 10.2139/ssrn.1589393 Cite this publication1st Jorge While not outlined in the 12thFYP, the PRC government has regularly made pledges of state-sponsored “economic cooperation” with Africa. Moreover, Chinese firms moving to these zones could be reimbursed for up to 50 percent of moving costs and could receive export and import tax rebates on Chinese construction materials.

More refined governance indicators should be used to verify whether Chinese and global FDI into Africa remain indistinguishable on this score: we plan to do this in future research.Discover the world's Today, there are currently six zones under construction or completed, two of which are 100 percent Chinese-owned. Read the original article on US-China Business Council. this content Customers may send orders or inquiries to: United Nations Publications Sales and Marketing Office, 300 E 42nd Street, 9th Floor, IN-919J New York, NY 10017, United States.

This is largely a result of the maturity and size of SOEs, which provide them with greater capacity to seize opportunities in more volatile environments. Leading state-owned firms include China National Offshore Unlike inflows, outflows increased in all African regions, resulting in a record total.   Full Report - http://unctad.org/en/PublicationsLibrary/wir2013_en.pdf   Figure 1.  Africa: Top 5 recipients of FDI inflows, 2011 and 2012(billions All rights reserved. Devinney at University of Leeds - Leeds University Business School (LUBS) International Political Economy: Investment & Finance eJournal Follow International Political Economy: Investment & Finance eJournal Subscribe to this fee journal

FDI flows to North Africa increased by 35 per cent to $11.5 billion in 2012, the World Investment Report notes. Recommended For You Disclaimer Featured Apple is lagging the market as iPhone 8 woes mount More "The Bottom Line" » Here's how much you need to save for college every year depending de la Paix, 1211 Geneva 10SwitzerlandT: +41 22 917 1234F: +41 22 917 0057 Connect with us Signup for our Newsletter Subscribe Please wait.... Submit a Paper Section 508 Text Only Pages Quick Links Research Paper Series Conference Papers Partners in Publishing Organization Homepages Newsletter Sign Up Rankings Top Papers Top Authors Top Organizations About

Investment drivers China’s investment in Africa can be traced both to specific policies as well as market drivers, particularly securing access to strategic resources. On the policy side, the Chinese government’s “going We find that economic size and macroeconomic stability are positively correlated with Chinese and global FDI in Africa. Africa is the third largest recipient of Chinese OFDI behind Asia and Europe, totaling nearly $90 billion. Charlie Hebdo Log in | Register Cart Browse journals by subject Back to top Area Studies Arts Behavioral Sciences Bioscience Built Environment Communication Studies Computer Science Development Studies Earth Sciences Economics,

South African companies were active in acquiring operations in industries such as mining, wholesale, and healthcare during 2012.While it is apparent that natural resources are still the mainstay of FDI flows Natural resources continue to attract investment from mining transnational corporations (TNCs). Energy resources such as recently discovered gas reserves in the United Republic of Tanzania and oil fields in Uganda drew increased FDI to East Africa. Eastern, Monday - Friday.

Meanwhile, Angola registered a third successive year of decline in FDI. Conversely, the openness of the economy is a determinant for global FDI but not of Chinese FDI, which appears to favour closed economies possibly due to industrial organizational concerns. Measured by FDI stock, Malaysia, South Africa, China and India (in that order) are the largest developing-country investors in Africa.