To read the full version of this content please select one of the options below:

Chinese and Indian investment in Ethiopia: infrastructure for ‘debt-trap diplomacy’ exchange and the land grabbing approach

Amsalu K. Addis (School of Economics and Management, Fuzhou University, Fuzhou, China)
Simplice Asongu (African Governance and Development Institute, Yaoundé, Cameroon)
Zhu Zuping (School of Economics and Management, Fuzhou University, Fuzhou, China)
Hailu Kendie Addis (Amhara Regional Agricultural Research Institute, Bahir Dar, Ethiopia)
Eshetu Shifaw (Department of Geography and Environmental Studies, Wollo University, Wollo, Ethiopia)

International Journal of Emerging Markets

ISSN: 1746-8809

Article publication date: 17 June 2020

Abstract

Purpose

The aim of this study is to examine the motive of China's and India's engagement in African countries particularly in Ethiopia and to address the land grabbing and debt-trap diplomacy between Ethiopia and the Asian drivers, which creates challenges across the diverse social, political, economic and ecological contexts.

Design/methodology/approach

This study utilises both primary and secondary data. The available literature is also reviewed. The primary data were gathered through semi-structured interviews and discussions from (1) several authority offices in Ethiopia, sources close to authorities, information-rich informants, employees and (2) perspectives, perceptions and prospects from individual members of society.

Findings

The study unmasks the win-win cooperation strategy from the perspective of the members of society in Ethiopia, evaluates whether China and India have strings attached or land grabbing motives. The study also shows that whether China's and India's move was deliberate, the implications of debt-trap diplomacy and exploitation in Ethiopia are apparent. Additionally, this study investigated several considerable potential threats to Ethiopia that will persist unless significant measures are taken to control the relations with Asian drivers.

Research limitations/implications

Some of the limitations of this paper pertain to the primary data collection process from the Ethiopian Investment Commission (EIC) and other authorities, which was very challenging because people can be punished for talking to journalists or researchers. Furthermore, some investors were not willing to participate in discussions because they were engaged in areas that are not related to their licenses. Many interviewees were also not willing to disclose their names, and the data are not exhaustive in the number of investment projects covered.

Originality/value

This study provides new evidence on the influence of Chinese and Indian investment, aid and trade on Ethiopia's social, political and economic spheres. Additionally, this study contributes to the ongoing debate on land grabbing and debt-trap diplomacy in Ethiopia.

Keywords

Acknowledgements

Conflicts of interest: The authors declare no conflict of interest. Author contributions: Amsalu K. Addis: conceptualization, conduct the survey, data gathering and analysis, revisions, development, and proofreading of the article. Simplice Asongu and Zhu Zuping: data analysis, supervise, revisions, development, and proofreading of the article. Hailu Kendie Addis and Eshetu Shifaw: revisions, development, and proofreading of the article.Funding: The author(s) disclosed receipt of the following financial support for the research, authorship and/or publication of this article: This paper was supported by the National Natural Science Foundation of China (NSFC) under grant number: 19AGL017. We would like to show gratitude to the National Natural Science Foundation of China for their research funding support. The funders have no role in the design, development, and submission of the study to the journal.

Citation

Addis, A.K., Asongu, S., Zuping, Z., Addis, H.K. and Shifaw, E. (2020), "Chinese and Indian investment in Ethiopia: infrastructure for ‘debt-trap diplomacy’ exchange and the land grabbing approach", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOEM-08-2019-0642

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited