TY  - JOUR
AB  - Purpose This study aims to examine the quantitative effect and direction of Chinese Foreign Direct Investment (FDI) on economic growth in Africa using a sample of 20 African countries from 2003 to 2012 with data obtained from United Nations Conference on Trade and Development and the World Bank.Design/methodology/approach The study used panel least squares regression, specifically fixed effect model to examine the quantitative effect of Chinese FDI on economic growth in Africa. The study also used Granger causality test to examine whether a causal relationship exists between economic growth and China’s FDI in Africa.Findings The study finds that a 1 per cent increase in China’s FDI stock in Africa significantly increases Africa’s gross domestic product (GDP) growth by 0.607 per cent, all things being equal. Furthermore, the study finds that a causal link exists between GDP growth in Africa and China’s FDI and the nature of causality is unidirectional.Practical implications The study recommends that to stimulate Chinese FDI in Africa, free visas must be given to Chinese investors coming into the continent, low tariffs should be imposed on inputs and intermediate goods from China and grant of business operation permit to Chinese investors must be made less bureaucratic.Originality/value This research has not been presented to any journal for publication and is originally written by the authors.
VL  - 10
IS  - 2
SN  - 1754-4408
DO  - 10.1108/JCEFTS-06-2017-0014
UR  - https://doi.org/10.1108/JCEFTS-06-2017-0014
AU  - Doku Isaac
AU  - Akuma John
AU  - Owusu-Afriyie John
PY  - 2017
Y1  - 2017/01/01
TI  - Effect of Chinese foreign direct investment on economic growth in Africa
T2  - Journal of Chinese Economic and Foreign Trade Studies
PB  - Emerald Publishing Limited
SP  - 162
EP  - 171
Y2  - 2024/09/24
ER  -