China’s Economic Expansion in Sub-Saharan Africa

2018 ◽  
pp. 113-148
Author(s):  
Rhys Jenkins
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Sub Saharan Africa ◽  
Economic Expansion ◽  
Economic Relations ◽  
Different Types ◽  
Sub Saharan ◽  
The Impact ◽  
Engineering Projects

The chapter documents the growth of economic relations between China and Sub-Saharan Africa (SSA), focussing on trade, foreign direct investment, Chinese construction and engineering projects, loans, and aid. The chapter highlights the way in which these are sometimes combined in resources-for-infrastructure deals. It shows the variety of different actors involved in these relationships, including state and non-state actors, on both the Chinese and African sides. It then discusses the role of strategic diplomatic, strategic economic, and commercial objectives in the growing Chinese involvement in SSA. It also addresses questions of African agency and the interests of African actors in economic relations with China. The impact of political, strategic economic and commercial factors on different types of economic relations is then analyzed econometrically.

China’s Economic Expansion in Latin America and the Caribbean

2018 ◽  
pp. 223-253
Author(s):  
Rhys Jenkins
Keyword(s):  
Foreign Direct Investment ◽  
Latin America ◽  
Latin American ◽  
Direct Investment ◽  
Economic Relations ◽  
Local Actors ◽  
The Caribbean ◽  
The Impact ◽  
Engineering Projects

The chapter documents the growth of economic relations between China and Latin America and the Caribbean (LAC), focussing on trade, foreign direct investment, Chinese construction and engineering projects, loans, and aid. It shows the variety of different actors involved in these relationships, including state and non-state actors on both the Chinese and Latin American sides. The chapter then discusses the role of strategic diplomatic, strategic economic, and commercial objectives in the growing Chinese involvement in LAC. It also addresses questions of Latin American agency and the interests of local actors in economic relations with China. The impact of political, strategic economic, and commercial factors on different types of economic relations are then analyzed econometrically.

The relationships between foreign direct investment, domestic savings, domestic investment, and economic growth: The case of Sub-Saharan Africa

2016 ◽  
Vol 38 (2) ◽  
pp. 193-217
Author(s):  
Nurudeen Abu ◽  
Mohd Zaini Abd Karim
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Sub Saharan Africa ◽  
Domestic Investment ◽  
Long Run ◽  
Domestic Savings ◽  
Sub Saharan ◽  
The Impact

Despite the large body of research on foreign direct investment, domestic savings, domestic investment and economic growth, little has been done to investigate the relationships among them. This paper examines the relationships among foreign direct investment, domestic savings, domestic investment, and economic growth in 16 Sub-Saharan African (SSA) countries from 1981 to 2011, using various techniques. The results of VAR estimation and Granger causality tests demonstrate that there is a unidirectional causality from foreign investment to growth and domestic investment, savings to growth, and a bidirectional causality between growth and domestic investment as well as savings and domestic investment. The results of the variance decomposition analysis reveal that foreign investment exerts more influence on growth. Savings are more important in explaining domestic investment, growth is more important in explaining foreign investment, and domestic investment is more important in explaining savings. Based on the results of the impulse response analysis, there is a positive unidirectional causality from foreign investment to growth and domestic investment, savings to growth, and a positive bidirectional causality between savings and domestic investment, both in the short and long-run. Although there is feedback causality between domestic investment and growth, the impact from investment is negative in the short-run and positive in the long-run. Thus, policies that encourage foreign investment and savings are required to boost domestic investment and promote growth, and policies that raise domestic investment will lead to higher savings and growth in SSA.

scholarly journals The Impact of Trade Openness and Foreign Direct Investment on Economic Welfare in sub-Saharan Africa

2021 ◽  
Vol 12 (2) ◽  
pp. 389
Author(s):  
Folasade Bosede Adegboye ◽  
Olumide Sunday Adesina ◽  
Felicia Omowunmi Olokoyo ◽  
Stephen Aanu Ojeka ◽  
Victoria Abosede Akinjare
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Industrial Development ◽  
Developing Economies ◽  
Trade Openness ◽  
Sub Saharan Africa ◽  
Economic Welfare ◽  
Sub Saharan ◽  
Openness To Trade ◽  
The Impact

The sub-Saharan African region is characterized by a high relative degree of openness to trade. The region is also identified with increased inflows of foreign investments with no significant welfare improvement. Economic development emphasizes that the lack of domestic investment in the developing economies could be boosted by trade openness and inflow of Foreign Direct Investment (FDI) for impactful enhancement of capital formation. In this article, the impact of trade openness and foreign capital inflow on economic welfare was examined on a sub-regional analysis for sub-Saharan Africa. The study also appraised the effect of openness to trade and FDI inflow on the region's economic welfare. The data for 30 countries from 2000 to 2018 were collected and analyzed, with the Generalized Least Square (GLS) technique to fit the model developed. The study showed that openness to trade has a significant impact on economic welfare for all sub-Saharan Africa regions, while FDI is only significant for the Western sub-region. Hence, the study recommends that the government of the countries in the sub-Saharan Africa region should boost trade openness to enhance efficiency in productivity, and improve industrial development.

scholarly journals Examining the Impact of Foreign Direct Investment (FDI) on Offshore CO2 in the Sub-Sahara

2020 ◽  
Vol 5 (1) ◽  
Author(s):  
Josiah Chukwuma Ngonadi ◽  
Sun Huaping ◽  
Joy Okere ◽  
Chuks Oguegbu
Keyword(s):  
Foreign Direct Investment ◽  
Co2 Emissions ◽  
Direct Investment ◽  
Sub Saharan Africa ◽  
Foreign Direct Investments ◽  
Method Of Moment ◽  
Sub Saharan ◽  
Sustainable Economic Growth ◽  
The Impact ◽  
The Relationship

This study examined the relationship between Foreign Direct Investment (FDI) and the emission of CO2 in the Sub Saharan Africa. The literature focuses on foreign direct investments and C02 emission studies in various countries. Data was obtained for the World Bank database from 2004 to 2015, the general method of moment (GMM) model was used for estimating parameters with endogenous regressions in the panel data model to analyze our data. We found out that FDI has significantly influenced the emission of CO2 in the Sub Saharan Africa. The results demonstrated the heterogeneity of the effects of foreign direct investment on CO2 emissions, the impact of foreign direct investment on CO2 emissions is negative and significant. However, the general environmental impact of foreign direct investment is determined by indirect effects and appears to be positive. Moreover, natural resources endowment seemed not to play a key role in this relationship. Recommendations were given to ensure the usage of renewable energy by ensuring a sustainable economic growth.

scholarly journals THE FINANCIAL MARKET OF UKRAINE AND THE ROLE OF FOREIGN DIRECT INVESTMENT

Ekonomika ◽  
2013 ◽  
Vol 92 (1) ◽  
pp. 64-77
Author(s):  
Igor Lyutiy ◽  
Mariya Borovikova
Keyword(s):  
Foreign Direct Investment ◽  
Financial Market ◽  
Financial Institutions ◽  
Foreign Investment ◽  
Direct Investment ◽  
Negative Effects ◽  
Different Types ◽  
The Stability ◽  
The Impact

Abstract. The main objective of this paper is to investigate the characteristics of the institutional structure of the Ukrainian financial market and to analyze the impact of foreign direct investment on it. The following methods of research were used by the authors: economic-statistical, tabular, and comparative (in empirical analysis; to make comparisons across different types of financial institutions, to investigate and evaluate the volumes of foreign direct investment by countries and their relation to the size of the domestic financial sector); systematic and logical (determining and analyzing the scope of the positive and negative effects of foreign investment on the financial market of Ukraine).The conclusions are as the follows: the structure of the financial market of Ukraine is rather nonbalanced and fragile; most foreign investors have changed their strategies on the Ukrainian financial market from aggressive to share-keeping; more attention should be paid to the development of the constructive policy concerning FDI to ensure the stability and even the development of the domestic financial market as well as to raise its investment attractiveness.Key words: financial market, commercial bank, non-bank financial institutions (NBFIs), foreign investment, investment attractiveness

scholarly journals Impact of Stock Market Development on Economic Growth: Evidence from Selected Sub‑Saharan African Countries

2019 ◽  
Vol 67 (4) ◽  
pp. 1071-1083
Author(s):  
Daniel Kwabena Twerefou ◽  
Emmanuel Abbey ◽  
Emmanuel A. Codjoe ◽  
Peter Saitoti Ngotho
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Stock Market ◽  
Direct Investment ◽  
Positive Impact ◽  
Sub Saharan Africa ◽  
Market Development ◽  
Stock Market Development ◽  
Sub Saharan ◽  
The Impact

This paper examines the impact of stock market development on economic growth in Sub‑Saharan Africa using a balanced panel data of five selected countries over the period 1993 – 2013 and the system generalised method of moments dynamic panel estimation framework. The paper finds a positive impact of stock market development proxied by the turnover ratio of domestic shares and market capitalization on economic growth though minimal. Furthermore, investment, lagged gross domestic product and human capital were found to have a significantly positive impact on growth while trade and foreign direct investment negatively impacted on growth, even though the results for foreign direct investment is not significant in all the models and consequently, not very robust. There should be policy measures aimed at enhancing economic growth using the development of the stocks market as a channel. Such policies should focus on developing the appropriate mix of taxation of investors as well as the development of requisite technology, institutional and regulatory framework that will facilitate an increase in the size and liquidity of the market in the sub‑region.

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