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Corresponding Author:
Emmanuel Wiafe, Ghana Institute of Management and Public Administration

Lucy Anning, Department of Economics, Faculty of Social Sciences, Accra Institute of Technology, Ghana

Effects of SINO FDI on the Growth of Sub-Saharan AFrica

Volume 74 - Issue 1, February 2021
(pp. 1-24)
JEL classification: F00, F43
Keywords: Foreign Direct Investment, China-Africa Relation; Economic Growth, PMG, Africa, China


The past two decades have seen numerous studies at various levels attempting to investigate the effect of Foreign Direct Investments (FDI) on the African region. A great majority of these studies reached the conclusion that FDI accounts for technology transfer across countries thereby increasing the total investment in African countries. However, regarding studies about Chinese investments in Africa, many authors claimed that Chinese investments in Africa bring with it more harm than good to the economies. This study aims to weigh out the effects of Chinese investments in Africa. The study used a dynamic panel regression approach to correct for possible endogeneity problems. It was concluded from the study that, the net of Chinese FDI is positive. Thus, Chinese FDI contributes positively to the economic growth of African countries. By implication, Chinese investments are setting the African economies on the road to achieving economic development through modernization, industrialization and strong economic growth.

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Institute for International Economics
of the Genoa Chamber of Commerce

Istituto di Economia Internazionale
Camera di Commercio di Genova
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