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Article
Publication date: 9 November 2021

Derrick Anquanah Cudjoe, He Yumei and Hanhui Hu

This study examines the impact of China’s trade, aid and foreign direct investment (FDI) on the economic growth of Africa.

Abstract

Purpose

This study examines the impact of China’s trade, aid and foreign direct investment (FDI) on the economic growth of Africa.

Design/methodology/approach

Our study covered 41 countries in Africa, cutting across the western, eastern, central, southern and northern sub-regions. The study adopted the dynamic system generalized method of moments (SGMM), feasible generalized least squares (FGLS) and Dumitrescu–Hurlin Panel Granger causality techniques for estimations.

Findings

Overall, FDI, trade and aid from China have a nonlinear relationship with Africa’s economic growth. The findings reveal a key novelty in that the marginal effect on real per capita GDP increases when China’s FDI interacts with the manufacturing sector in Africa. These findings are robust to long-run estimations.

Research limitations/implications

Given that we have examined the short-and long-run symbiotic effects of China’s FDI and Africa’s manufacturing sector and China’s aid and Africa’s manufacturing sector, more studies are warranted in this area, particularly to produce further empirical evidence of these findings. Moreover, future work could focus on investigating the country-specific effects of China’s trade, China’s FDI and China’s aid on real GDP per capita in each African country as our results reflect within-country elasticities.

Originality/value

This study provides new evidence on the impact of China’s trade, aid and FDI on the growth of African economies. To the best of our knowledge, this is the first study to empirically explore the long-run effects of China’s trade, FDI and aid on economic growth in African countries. This study also tests the claim of the displacement of Africa’s manufacturing industry by its Chinese counterparts.

Details

International Journal of Emerging Markets, vol. 18 no. 10
Type: Research Article
ISSN: 1746-8809

Keywords

Open Access
Article
Publication date: 19 July 2022

Min Ye

The new century has witnessed rapid growth in China's foreign aid. However, there is still yet any consensus about the nature or the consequences of China's foreign aid. In this…

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Abstract

Purpose

The new century has witnessed rapid growth in China's foreign aid. However, there is still yet any consensus about the nature or the consequences of China's foreign aid. In this study, the author reviews the history of China's foreign aid and finds significant changes in China's foreign aid policy in the past seven decades.

Design/methodology/approach

The author analyzes China's foreign aid data between 2000 and 2017 from the AidData program with a Tobit model.

Findings

This study’s results show both the similarities and differences between China and Western donors. These “Chinese characteristics” in its foreign aid, we argue, illustrate China's dual identity in the new century: both the largest developing country that minds its own economic development and an emerging global power that aspires to elevate its global status and enhance its soft power.

Originality/value

This article is, to the author’s knowledge, one of the first comprehensive empirical analysis of China's foreign aid using the data from AidData program. It will enrich our understanding of the nature and consequences of China's foreign aid in the new century.

Details

International Trade, Politics and Development, vol. 6 no. 2
Type: Research Article
ISSN: 2586-3932

Keywords

Book part
Publication date: 17 June 2016

Changsong Niu and Jing Liu

This chapter aims to investigate and interpret China’s educational aid by analyzing its history, philosophies, and practices in Africa. The study is based on review and analysis…

Abstract

This chapter aims to investigate and interpret China’s educational aid by analyzing its history, philosophies, and practices in Africa. The study is based on review and analysis of governmental documents, reports, academic papers, and news by Chinese and foreign scholars on China’s aid, particularly educational aid to Africa. The analysis unveils three transformations of China’s aid “from pro-ideology to de-ideology,” “from single area to multiple areas,” and “from pragmatic economy driven to sustainable and humane economy focused” in Africa. Meanwhile, it indicates a continuity of the philosophy of solidarity, morality, and reciprocity in China’s South-South cooperation with African educational development.

The analysis also shows China’s educational aid does not match well with the framework of the Western donors. China, under the FOCAC framework, is devoted to higher education cooperation, human resources training program, scholarship, and Chinese language education with African partners. With the growth of its economic and political influence, China will play multiple roles as the biggest developing country and as an active promoter and provider for South-South cooperation in the negotiation and construction of the post-2015 agenda. Nevertheless, we assume China will keep a pragmatic higher education cooperation with its developing country partners to inclusively link it with business, technology transfer, and people-to-people exchange.

This study delivers a comprehensive review and analysis of paradigm shift, philosophy, mechanism, and practice of China’s educational aid to Africa to fill up the literature gap in this field. It also timely presents China’s stance toward discussion on the post-2015 agenda.

Details

Post-Education-Forall and Sustainable Development Paradigm: Structural Changes with Diversifying Actors and Norms
Type: Book
ISBN: 978-1-78441-271-5

Keywords

Article
Publication date: 11 April 2023

Xiaoying Jiang and John D. Holst

The purpose of this study is to conduct a systematic review of the literature addressing international aid to education, primarily focusing on China's aid principles and its…

Abstract

Purpose

The purpose of this study is to conduct a systematic review of the literature addressing international aid to education, primarily focusing on China's aid principles and its practice of scholarship programs and short-term training held in higher education institutions (HEIs).

Design/methodology/approach

Using the systematic review approach, the authors identified 25 English-language articles in the academic databases. The review is driven by the analytical lenses of (a) the policy formulation and implementation of China's educational aid across macro-, meso- and micro-levels and (b) theories and methodologies that are commonly adopted in the existing studies.

Findings

The review identified three themes: (a) China's aid discourse in the international aid landscape, (b) critical reflections on educational aid program management and (c) international students' study experiences and perceptions of China. The authors also outline prevalent theories and methodological approaches used in the existing literature.

Research limitations/implications

This literature review provides a review of research on China's international aid to education in the past 20 years, as a frequently cited example of emerging donors that have taken alternative aid approaches, thus bringing about a broader and nuanced perspective of aid to education. It also generates implications for researchers who are interested in studying education and development in the global context.

Originality/value

This study provides is first systematic literature review of studies on international aid to education provided by emerging donors, taking China as an example, to summarize its aid principles and aid practice in China's HEIs.

Details

Higher Education, Skills and Work-Based Learning, vol. 13 no. 3
Type: Research Article
ISSN: 2042-3896

Keywords

Article
Publication date: 7 May 2019

Kassaye Gudeta Deyassa

The purpose of this paper is to examine whether the welfare and social policy ideas that characterize Chinese aid in Africa are influencing traditional donors and becoming global.

Abstract

Purpose

The purpose of this paper is to examine whether the welfare and social policy ideas that characterize Chinese aid in Africa are influencing traditional donors and becoming global.

Design/methodology/approach

The paper utilised a qualitative study that has two main components: first, a comprehensive content analysis of over 50 key Sino–African, Chinese and Western policy documents from 2000 (since cooperation between Beijing and African countries first became institutionalised); and, second, there were semi-structured interviews with Chinese, African and Western stakeholders in Addis Ababa (Ethiopia), who were directly involved in the relationship between China and Africa and related development issues.

Findings

The results of documentation and interview analyses show that there are currently significant differences between Chinese and Western approaches. China has developed much stronger and more explicit links between development aid and economic activity than most Western donors. The aid is usually implemented through specific projects rather than broader programmes or policies.

Originality/value

It is reasonable to assume that the new developments initiated by the Agency’s international pioneers are likely to be a new emerging trend. As the conditions and processes of social policy design in developing countries are so closely linked with the ideas of international development institutions (if not predetermined), a possible change in the direction of travel of the ideas and activities of this community requires close coordination analysis and evaluation.

Details

International Journal of Sociology and Social Policy, vol. 39 no. 5/6
Type: Research Article
ISSN: 0144-333X

Keywords

Open Access
Article
Publication date: 23 June 2021

Alyaa Wagdy el-Shafei and Mohamed Metawe

The main purpose of the paper is to examine the truth behind allegations of neo-colonialism performed by China toward Africa, which was raised due to the growing relationship…

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Abstract

Purpose

The main purpose of the paper is to examine the truth behind allegations of neo-colonialism performed by China toward Africa, which was raised due to the growing relationship between China and Africa that enhanced the debate between supporters of the notion of neo-colonialism or mutual beneficial relationship. In addition to the growing number of arguments are on the dominance of PRC in Africa over the western powers as European Union or United States in the Continent.

Design/methodology/approach

The paper investigates the claims of neo-colonialism practiced by China toward Africa through the lenses of international political economy using the Interdependence theory of neoliberalists. Egypt was selected as a case study due to the emphases that Egypt gives to China as a strategic partner and as rising economic power as well as representing a way of diversifying Egypt's foreign policy and an additional economic partner beside the western ones. The research relied on two interwoven indicators to investigate the main argument: Trade and Development Aid.

Findings

The two pillars of analysis indicate that the growing relationship between Egypt and China is a form of interdependent relationship that is expected to get further complex in the future, which is relatively indicated among other things in the synergy Egypt has made between its Vision 2030 and China's Belt and Road Initiative. In reference to development aid, China uses different techniques that is not commonly used by the donors of Official Development Assistance (“ODA”), and due to unpublished actual data on China's aid figures, any indication of dominance is hard to attain regardless a solo incident of debt trap in Africa, the model of China's aid is provided through low-interest loans for development projects that is highly important for developing countries.

Originality/value

The paper tried to engage in the ongoing debate and examine the truth behind the neo-colonial allegations from the perspective of international political economy, which is an added value to the literature in this regard as the data provided are prepared for the present research purpose.

Details

Review of Economics and Political Science, vol. 7 no. 2
Type: Research Article
ISSN: 2356-9980

Keywords

Article
Publication date: 28 April 2020

Tatiana Andrea Gélvez Rubio and Juan Carlos Gachúz Maya

This paper enquires into general trends of China's International Development Cooperation over the past decade in Latin America and provides insights into the challenges with the…

Abstract

Purpose

This paper enquires into general trends of China's International Development Cooperation over the past decade in Latin America and provides insights into the challenges with the Belt and Road Initiative.

Design/methodology/approach

This paper analyses quantitative data for Chinese Official Development Assistance (ODA) and Other Official Flows (OOF) for projects in Latin America based on recent data contributions including Bluhm et al. (2018) and Gallagher & Myers (2019).

Findings

Based on the data available, it can be concluded that the cooperation between China and Latin America has been increasing. For instance, the value of China's cooperation increased by 4.5% per year on average from 2000 to 2014. Moreover, China's economic and political motivations in the region indicate that the cooperative relationship has been changing from a South–South to a North–South framework. Two main factors are involved in this transition: the evolution of China from a developing country to a global emerging power and the implementation of the Belt and Road Initiative to strengthen political and economic ties with the governments of the region.

Practical implications

This investigation suggests that the increasing number of loans in the region and Beijing's growing interest in trade and natural resources are structural factors that guide the Chinese foreign policy.

Originality/value

There are few analyses of China's cooperation for development in Latin America that involve the evaluation of concessional and non-concessional loans for projects in the region in the last decade. This paper also analyses the challenges and opportunities that the implementation of the Belt and Road Initiative represents for the region.

Details

Asian Education and Development Studies, vol. 10 no. 3
Type: Research Article
ISSN: 2046-3162

Keywords

Abstract

Details

International Perspectives on Democratization and Peace
Type: Book
ISBN: 978-1-80043-068-6

Article
Publication date: 2 February 2015

Godbertha Kinyondo and Yuda Julius Chatama

The purpose of this paper was to investigate China ' s motive for its relations with Africa. Within that broad framework, the paper investigates China–Tanzania cooperation…

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Abstract

Purpose

The purpose of this paper was to investigate China ' s motive for its relations with Africa. Within that broad framework, the paper investigates China–Tanzania cooperation from an economic and social development perspective. It analyses the status of Chinese investments and, more specifically, it focuses on the increasing numbers of Chinese garages and assesses whether they have positive spill-over towards achievement of sustainable development.

Design/methodology/approach

Case study was used; it involves an up-close, in-depth and detailed examination of the growth of Chinese garages in Tanzania, as well as its related contextual conditions including the overall impact of foreign direct investment (FDI) on the vehicle repair sector in Tanzania. Scholarly works from various sources including researchers as well as authoritative reports were consulted.

Findings

The paper shows that there is an increase in Chinese garage investment which has brought significant benefits such as technology spill-over, increased employment albeit at low-level pay as well as functioning as a stimulus for Tanzanian self-employment.

Practical implications

A free market environment which attracts significant FDI including Chinese garages should be strengthened. Chinese garages should not employ Chinese when there are Tanzanians with required expertise. Further research on the long history of relations between Tanzania and Scandinavian countries is better for comparison.

Originality/value

The paper presents original findings based on scholarly work related to the growth of Chinese garage investments in Tanzania.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 8 no. 1
Type: Research Article
ISSN: 1754-4408

Keywords

Article
Publication date: 1 January 2014

Changsong Niu

The purpose of this paper is to examine China-Africa educational cooperation under the framework of Forum on China-Africa Cooperation (FOCAC) while illustrating the modalities of…

Abstract

Purpose

The purpose of this paper is to examine China-Africa educational cooperation under the framework of Forum on China-Africa Cooperation (FOCAC) while illustrating the modalities of Sino-Africa educational cooperation.

Design/methodology/approach

Based on empirical and documentary analysis, the paper describes and explores the unique features of China-Africa educational cooperation.

Findings

In the past decades, China's expanding engagement with Africa in the field of international development assistance has attracted great attention and given rise to mixed reactions and arguments at the international level. China's cooperation with Africa has a long and notable history, dating back to the 1950s. China's cooperation with other developing countries is known as South-South development cooperation, based on principles of equality, mutual benefit, solidarity and no conditionality. With a thorough and critical analysis of the decision-making mechanism and the practices of China's educational cooperation with Africa, this paper puts forward some important issues regarding the perspective of sustainability and effectiveness in Chinese cooperative arrangements.

Research limitations/implications

The paper tries to explain the dynamic and the practices of China's education engagement with Africa and puts forward key challenges regarding its effectiveness toward new strategic partnerships. However, the answers to these questions require some innovative measures in the future practices of China-Africa educational cooperation.

Originality/value

The China-Africa education partnership is not a stand-alone sector, which can be better understood in the context of the historical development of China-Africa cooperation and under the framework of the FOCAC.

Details

Asian Education and Development Studies, vol. 3 no. 1
Type: Research Article
ISSN: 2046-3162

Keywords

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