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Chinese Foreign Direct Investment in Africa: Its Motivations, Determinants, and Impact on the African Economies

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The Palgrave Handbook of Africa’s Economic Sectors

Abstract

China’s foreign direct investment (FDI) in Africa in the twenty-first century has increased significantly. This chapter provides comprehensive and comparative analyses of major features of China’s FDI in Africa, including its motivations, determinants, position in the world, and impact on African economies. We find that (a) the Chinese investment has risen substantially in recent years, but remains small relative to the traditional investors from Europe and the US; (b) sectoral distribution and motivations of the China’s FDI are similar to those from traditional investors (OECD member countries); and (c) special benefits of China’s FDI to Africa include investment in construction-infrastructure and suitable technologies in labor-intensive projects; while potential problems are related to the debt trap and lack of job creation.

Many thanks go to Dr. Bichaka Fayissa and Dr. Evelyn Wamboye, editors of the book, and anonymous referees for their helpful comments. Thanks also go to my colleagues, Dr. Tim Harris and Dr. Rai Ram, for their editorial helps. Of course, any errors remain my own.

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Authors and Affiliations

  1. Department of Economics, Illinois State University, Normal, IL, USA

    Kevin Honglin Zhang

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  1. Kevin Honglin Zhang
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Correspondence to Kevin Honglin Zhang .

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Editors and Affiliations

  1. Department of Economics, Pennsylvania State University DuBois, DuBois, PA, USA

    Evelyn F. Wamboye

  2. Department of Economics and Finance, Middle Tennessee State University, Murfeesboro, TN, USA

    Bichaka Fayissa

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Zhang, K.H. (2022). Chinese Foreign Direct Investment in Africa: Its Motivations, Determinants, and Impact on the African Economies. In: Wamboye, E.F., Fayissa, B. (eds) The Palgrave Handbook of Africa’s Economic Sectors. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-75556-0_23

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  • DOI: https://doi.org/10.1007/978-3-030-75556-0_23

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  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-030-75555-3

  • Online ISBN: 978-3-030-75556-0

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

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