China and Africa : Expanding Economic Ties in an Evolving Global Context
Economic growth in Sub-Saharan Africa (SSA) has averaged roughly 5 percent per year over the past decade, improving living standards and bolstering human development indicators across the continent. Stronger public institutions, a supportive, priva...
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2015
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2015/03/24177102/china-africa-expanding-economic-ties-evolving-global-context http://hdl.handle.net/10986/21788 |
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okr-10986-21788 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING AGRICULTURAL COMMODITIES AGRICULTURAL PRODUCTS AGRICULTURAL SECTORS AGRICULTURE AMOUNT OF CAPITAL APPROVAL PROCESS BACKED FINANCING BACKED LOANS BANK FINANCING BANKING LAWS BASE YEAR BENCHMARK BILATERAL TRANSACTIONS BUSINESS ENVIRONMENT BUSINESS OPPORTUNITIES CAPITAL FORMATION CAPITAL INVESTMENT CAPITAL REQUIREMENT CAPITAL STOCK COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL LENDING COMMERCIAL LOANS COMMODITIES COMMODITY COMMODITY PRICE COMMODITY PRICES COMMUNICATIONS TECHNOLOGY COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COMPETITION POLICIES COMPETITIVE ADVANTAGES CONSUMER GOODS CONSUMERS CONSUMPTION RATES COUNTRY MARKETS CREDIT ACCESS CREDIT LINE CREDIT LINES CREDIT PROGRAMS CRITICAL INFRASTRUCTURE CURRENCY DEVELOPING COUNTRIES DEVELOPING ECONOMIES DEVELOPMENT ASSISTANCE DEVELOPMENT BANK DEVELOPMENT BANKS DEVELOPMENT FINANCE DEVELOPMENT PROJECTS DIRECT ACCESS DIVERSIFICATION DIVIDENDS DOMESTIC MARKET DOUBLE TAXATION ECONOMIC COOPERATION ECONOMIC CRISIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POWERS ECONOMIC RESEARCH ECONOMIES OF SCALE EMERGING ECONOMIES EQUIPMENT EXCHANGE RATE EXCHANGE RATES EXPORT COMPETITIVENESS EXPORT CREDITS EXPORT GROWTH EXPORT PROCESSING ZONE EXPORTER EXPORTERS EXPOSURE FINANCES FINANCIAL ASSISTANCE FINANCIAL BENEFITS FINANCIAL CRISIS FINANCIAL FLOWS FINANCIAL MARKETS FINANCIAL NETWORK FINANCIAL SERVICES FINANCIAL SUPPORT FINANCING ARRANGEMENTS FIXED CAPITAL FIXED INVESTMENT FORECASTS FOREIGN CAPITAL FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN OWNERSHIP FOREIGN TRADE FREE LOANS FREE TRADE GDP GLOBAL EXPORTS GLOBAL INVESTMENT GLOBAL MARKETS GLOBALIZATION GROSS DOMESTIC PRODUCT GROSS FIXED CAPITAL FORMATION GROWTH RATE GROWTH RATES HOLDING HOME COUNTRY HUMAN DEVELOPMENT INCOME INCOME TAX INDUSTRIAL ECONOMY INDUSTRIALIZATION INFLATION INFRASTRUCTURE FINANCING INFRASTRUCTURE PROJECTS INITIAL INVESTMENT INSURANCE INTEREST RATES INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INTERNATIONAL MARKETS INTERNATIONAL STANDARDS INTERNATIONAL TRADE INVESTING INVESTMENT CLIMATE INVESTMENT CONTRACTS INVESTMENT FLOWS INVESTMENT OPPORTUNITIES INVESTMENT POLICY INVESTMENT PROJECTS JOB CREATION JOINT VENTURES LABOR MARKETS LARGE-SCALE INVESTMENT LARGE-SCALE INVESTMENTS LESS DEVELOPED COUNTRY LIBERALIZATION LINE OF CREDIT LIVING STANDARDS LOAN LOAN PROGRAMS LOAN SIZE LOCAL GOVERNMENTS LOCAL MARKET LOW-INCOME COUNTRIES MACROECONOMIC MANAGEMENT MACROECONOMICS MANUFACTURING INDUSTRIES MANUFACTURING INDUSTRY MERGERS MIDDLE-INCOME COUNTRY MONETARY FUND MULTILATERAL DEVELOPMENT MULTINATIONALS NATIONAL DEVELOPMENT NATURAL RESOURCE NATURAL RESOURCES NEW BUSINESS OFFSHORE FINANCIAL CENTER OFFSHORE FINANCIAL CENTERS OIL RESERVES OPERATING COSTS OUTPUT OUTSOURCING PENSIONS POLICY ENVIRONMENT PORTFOLIO PRICE INCREASES PRIVATE ENTERPRISE PRIVATE ENTERPRISES PRIVATE INVESTMENT PRIVATE INVESTMENTS PRIVATE INVESTORS PRIVATE MARKETS PRODUCTION CAPACITY PRODUCTION COSTS PROFIT MARGIN PUBLIC SPENDING RAPID INDUSTRIALIZATION RATE OF RETURN RATE OF RETURN ON CAPITAL REAL ESTATE REAL EXCHANGE RATE REAL EXCHANGE RATES REGIONAL INTEGRATION REGISTRATION PROCESS REGISTRATION SYSTEM RENEWABLE ENERGY SCHOLARSHIPS SECURITIES STABILIZATION POLICIES TAX RATE TAX SYSTEM TECHNICAL ASSISTANCE TECHNOLOGY TRANSFER TRADE BALANCE TRADE BARRIERS TRADE LIBERALIZATION TRADE PROTECTIONS TRADING TRANSACTION TRANSACTION COSTS TRANSFER PAYMENTS TRANSITION ECONOMIES TRANSPARENCY TRUST FUND UNION URBANIZATION VOLATILITY WAGE RATES WAGES WORLD DEVELOPMENT INDICATORS WORLD ECONOMY WORLD INVESTMENT REPORT WORLD TRADE |
| spellingShingle |
ACCOUNTING AGRICULTURAL COMMODITIES AGRICULTURAL PRODUCTS AGRICULTURAL SECTORS AGRICULTURE AMOUNT OF CAPITAL APPROVAL PROCESS BACKED FINANCING BACKED LOANS BANK FINANCING BANKING LAWS BASE YEAR BENCHMARK BILATERAL TRANSACTIONS BUSINESS ENVIRONMENT BUSINESS OPPORTUNITIES CAPITAL FORMATION CAPITAL INVESTMENT CAPITAL REQUIREMENT CAPITAL STOCK COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL LENDING COMMERCIAL LOANS COMMODITIES COMMODITY COMMODITY PRICE COMMODITY PRICES COMMUNICATIONS TECHNOLOGY COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COMPETITION POLICIES COMPETITIVE ADVANTAGES CONSUMER GOODS CONSUMERS CONSUMPTION RATES COUNTRY MARKETS CREDIT ACCESS CREDIT LINE CREDIT LINES CREDIT PROGRAMS CRITICAL INFRASTRUCTURE CURRENCY DEVELOPING COUNTRIES DEVELOPING ECONOMIES DEVELOPMENT ASSISTANCE DEVELOPMENT BANK DEVELOPMENT BANKS DEVELOPMENT FINANCE DEVELOPMENT PROJECTS DIRECT ACCESS DIVERSIFICATION DIVIDENDS DOMESTIC MARKET DOUBLE TAXATION ECONOMIC COOPERATION ECONOMIC CRISIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POWERS ECONOMIC RESEARCH ECONOMIES OF SCALE EMERGING ECONOMIES EQUIPMENT EXCHANGE RATE EXCHANGE RATES EXPORT COMPETITIVENESS EXPORT CREDITS EXPORT GROWTH EXPORT PROCESSING ZONE EXPORTER EXPORTERS EXPOSURE FINANCES FINANCIAL ASSISTANCE FINANCIAL BENEFITS FINANCIAL CRISIS FINANCIAL FLOWS FINANCIAL MARKETS FINANCIAL NETWORK FINANCIAL SERVICES FINANCIAL SUPPORT FINANCING ARRANGEMENTS FIXED CAPITAL FIXED INVESTMENT FORECASTS FOREIGN CAPITAL FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN OWNERSHIP FOREIGN TRADE FREE LOANS FREE TRADE GDP GLOBAL EXPORTS GLOBAL INVESTMENT GLOBAL MARKETS GLOBALIZATION GROSS DOMESTIC PRODUCT GROSS FIXED CAPITAL FORMATION GROWTH RATE GROWTH RATES HOLDING HOME COUNTRY HUMAN DEVELOPMENT INCOME INCOME TAX INDUSTRIAL ECONOMY INDUSTRIALIZATION INFLATION INFRASTRUCTURE FINANCING INFRASTRUCTURE PROJECTS INITIAL INVESTMENT INSURANCE INTEREST RATES INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INTERNATIONAL MARKETS INTERNATIONAL STANDARDS INTERNATIONAL TRADE INVESTING INVESTMENT CLIMATE INVESTMENT CONTRACTS INVESTMENT FLOWS INVESTMENT OPPORTUNITIES INVESTMENT POLICY INVESTMENT PROJECTS JOB CREATION JOINT VENTURES LABOR MARKETS LARGE-SCALE INVESTMENT LARGE-SCALE INVESTMENTS LESS DEVELOPED COUNTRY LIBERALIZATION LINE OF CREDIT LIVING STANDARDS LOAN LOAN PROGRAMS LOAN SIZE LOCAL GOVERNMENTS LOCAL MARKET LOW-INCOME COUNTRIES MACROECONOMIC MANAGEMENT MACROECONOMICS MANUFACTURING INDUSTRIES MANUFACTURING INDUSTRY MERGERS MIDDLE-INCOME COUNTRY MONETARY FUND MULTILATERAL DEVELOPMENT MULTINATIONALS NATIONAL DEVELOPMENT NATURAL RESOURCE NATURAL RESOURCES NEW BUSINESS OFFSHORE FINANCIAL CENTER OFFSHORE FINANCIAL CENTERS OIL RESERVES OPERATING COSTS OUTPUT OUTSOURCING PENSIONS POLICY ENVIRONMENT PORTFOLIO PRICE INCREASES PRIVATE ENTERPRISE PRIVATE ENTERPRISES PRIVATE INVESTMENT PRIVATE INVESTMENTS PRIVATE INVESTORS PRIVATE MARKETS PRODUCTION CAPACITY PRODUCTION COSTS PROFIT MARGIN PUBLIC SPENDING RAPID INDUSTRIALIZATION RATE OF RETURN RATE OF RETURN ON CAPITAL REAL ESTATE REAL EXCHANGE RATE REAL EXCHANGE RATES REGIONAL INTEGRATION REGISTRATION PROCESS REGISTRATION SYSTEM RENEWABLE ENERGY SCHOLARSHIPS SECURITIES STABILIZATION POLICIES TAX RATE TAX SYSTEM TECHNICAL ASSISTANCE TECHNOLOGY TRANSFER TRADE BALANCE TRADE BARRIERS TRADE LIBERALIZATION TRADE PROTECTIONS TRADING TRANSACTION TRANSACTION COSTS TRANSFER PAYMENTS TRANSITION ECONOMIES TRANSPARENCY TRUST FUND UNION URBANIZATION VOLATILITY WAGE RATES WAGES WORLD DEVELOPMENT INDICATORS WORLD ECONOMY WORLD INVESTMENT REPORT WORLD TRADE Pigato, Miria Tang, Wenxia China and Africa : Expanding Economic Ties in an Evolving Global Context |
| geographic_facet |
Africa East Asia and Pacific Sub-Saharan Africa China |
| description |
Economic growth in Sub-Saharan Africa
(SSA) has averaged roughly 5 percent per year over the past
decade, improving living standards and bolstering human
development indicators across the continent. Stronger public
institutions, a supportive, private sector focused policy
environment, responsible macroeconomic management, and a
sustained commitment to structural reforms have greatly
expanded opportunities for countries in SSA to participate
in global markets. In recent years, many countries in the
region have benefited from an increasingly favorable
external environment, high commodity prices, and an
especially strong demand for natural resources by emerging
economies, particularly China. Over the longer term,
leveraging Chinese investment to support broad-based growth
will require policies designed to boost the competitiveness
of sectors in which China s economic rebalancing may create
a comparative advantage for SSA. To date, few African
countries have been able to benefit from large-scale Chinese
investment outside the resource sector. However, as China s
growth slows and its economy shifts toward a more
consumption-driven model, it is likely that global demand
for resource imports will slow as well. Countries with the
most heavily concentrated export mix, particularly in the
mineral and oil sectors are the most vulnerable to China s
economic rebalancing and should be ready to adopt measures
to mitigate the impact of negative terms-of-trade shocks. By
contrast, as wage rates in China continue to rise and firms
refocus their attention on domestic demand, countries in SSA
will be well positioned to exploit emerging opportunities
for investment in export-oriented manufacturing. Ethiopia
provides an instructive example, as its inexpensive yet
relatively skilled labor force, coupled with the
government s proactive efforts to court Chinese investors,
have enabled Ethiopia to attract substantial investments in
labor-intensive industries. Infrastructure enhancement,
workforce development, and good-governance reforms offer a
promising strategy for many countries in the region.
Although the establishment of industrial zones has yielded
mixed results, several salient success stories warrant
careful attention. This report discusses how Africa could
take advantage of the untapped opportunities offered by
China s progressively intensifying investment and trade ties
with SSA. It is hoped that this analysis will enrich the
ongoing dialogue between policy makers, private firms, and
civil society regarding China s increasingly important role
in the growth and development of Sub-Saharan Africa. |
| format |
Working Paper |
| author |
Pigato, Miria Tang, Wenxia |
| author_facet |
Pigato, Miria Tang, Wenxia |
| author_sort |
Pigato, Miria |
| title |
China and Africa : Expanding Economic Ties in an Evolving Global Context |
| title_short |
China and Africa : Expanding Economic Ties in an Evolving Global Context |
| title_full |
China and Africa : Expanding Economic Ties in an Evolving Global Context |
| title_fullStr |
China and Africa : Expanding Economic Ties in an Evolving Global Context |
| title_full_unstemmed |
China and Africa : Expanding Economic Ties in an Evolving Global Context |
| title_sort |
china and africa : expanding economic ties in an evolving global context |
| publisher |
World Bank, Washington, DC |
| publishDate |
2015 |
| url |
http://documents.worldbank.org/curated/en/2015/03/24177102/china-africa-expanding-economic-ties-evolving-global-context http://hdl.handle.net/10986/21788 |
| _version_ |
1764449183158239232 |
| spelling |
okr-10986-217882021-06-14T10:18:01Z China and Africa : Expanding Economic Ties in an Evolving Global Context Pigato, Miria Tang, Wenxia ACCOUNTING AGRICULTURAL COMMODITIES AGRICULTURAL PRODUCTS AGRICULTURAL SECTORS AGRICULTURE AMOUNT OF CAPITAL APPROVAL PROCESS BACKED FINANCING BACKED LOANS BANK FINANCING BANKING LAWS BASE YEAR BENCHMARK BILATERAL TRANSACTIONS BUSINESS ENVIRONMENT BUSINESS OPPORTUNITIES CAPITAL FORMATION CAPITAL INVESTMENT CAPITAL REQUIREMENT CAPITAL STOCK COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL LENDING COMMERCIAL LOANS COMMODITIES COMMODITY COMMODITY PRICE COMMODITY PRICES COMMUNICATIONS TECHNOLOGY COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COMPETITION POLICIES COMPETITIVE ADVANTAGES CONSUMER GOODS CONSUMERS CONSUMPTION RATES COUNTRY MARKETS CREDIT ACCESS CREDIT LINE CREDIT LINES CREDIT PROGRAMS CRITICAL INFRASTRUCTURE CURRENCY DEVELOPING COUNTRIES DEVELOPING ECONOMIES DEVELOPMENT ASSISTANCE DEVELOPMENT BANK DEVELOPMENT BANKS DEVELOPMENT FINANCE DEVELOPMENT PROJECTS DIRECT ACCESS DIVERSIFICATION DIVIDENDS DOMESTIC MARKET DOUBLE TAXATION ECONOMIC COOPERATION ECONOMIC CRISIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POWERS ECONOMIC RESEARCH ECONOMIES OF SCALE EMERGING ECONOMIES EQUIPMENT EXCHANGE RATE EXCHANGE RATES EXPORT COMPETITIVENESS EXPORT CREDITS EXPORT GROWTH EXPORT PROCESSING ZONE EXPORTER EXPORTERS EXPOSURE FINANCES FINANCIAL ASSISTANCE FINANCIAL BENEFITS FINANCIAL CRISIS FINANCIAL FLOWS FINANCIAL MARKETS FINANCIAL NETWORK FINANCIAL SERVICES FINANCIAL SUPPORT FINANCING ARRANGEMENTS FIXED CAPITAL FIXED INVESTMENT FORECASTS FOREIGN CAPITAL FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN OWNERSHIP FOREIGN TRADE FREE LOANS FREE TRADE GDP GLOBAL EXPORTS GLOBAL INVESTMENT GLOBAL MARKETS GLOBALIZATION GROSS DOMESTIC PRODUCT GROSS FIXED CAPITAL FORMATION GROWTH RATE GROWTH RATES HOLDING HOME COUNTRY HUMAN DEVELOPMENT INCOME INCOME TAX INDUSTRIAL ECONOMY INDUSTRIALIZATION INFLATION INFRASTRUCTURE FINANCING INFRASTRUCTURE PROJECTS INITIAL INVESTMENT INSURANCE INTEREST RATES INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INTERNATIONAL MARKETS INTERNATIONAL STANDARDS INTERNATIONAL TRADE INVESTING INVESTMENT CLIMATE INVESTMENT CONTRACTS INVESTMENT FLOWS INVESTMENT OPPORTUNITIES INVESTMENT POLICY INVESTMENT PROJECTS JOB CREATION JOINT VENTURES LABOR MARKETS LARGE-SCALE INVESTMENT LARGE-SCALE INVESTMENTS LESS DEVELOPED COUNTRY LIBERALIZATION LINE OF CREDIT LIVING STANDARDS LOAN LOAN PROGRAMS LOAN SIZE LOCAL GOVERNMENTS LOCAL MARKET LOW-INCOME COUNTRIES MACROECONOMIC MANAGEMENT MACROECONOMICS MANUFACTURING INDUSTRIES MANUFACTURING INDUSTRY MERGERS MIDDLE-INCOME COUNTRY MONETARY FUND MULTILATERAL DEVELOPMENT MULTINATIONALS NATIONAL DEVELOPMENT NATURAL RESOURCE NATURAL RESOURCES NEW BUSINESS OFFSHORE FINANCIAL CENTER OFFSHORE FINANCIAL CENTERS OIL RESERVES OPERATING COSTS OUTPUT OUTSOURCING PENSIONS POLICY ENVIRONMENT PORTFOLIO PRICE INCREASES PRIVATE ENTERPRISE PRIVATE ENTERPRISES PRIVATE INVESTMENT PRIVATE INVESTMENTS PRIVATE INVESTORS PRIVATE MARKETS PRODUCTION CAPACITY PRODUCTION COSTS PROFIT MARGIN PUBLIC SPENDING RAPID INDUSTRIALIZATION RATE OF RETURN RATE OF RETURN ON CAPITAL REAL ESTATE REAL EXCHANGE RATE REAL EXCHANGE RATES REGIONAL INTEGRATION REGISTRATION PROCESS REGISTRATION SYSTEM RENEWABLE ENERGY SCHOLARSHIPS SECURITIES STABILIZATION POLICIES TAX RATE TAX SYSTEM TECHNICAL ASSISTANCE TECHNOLOGY TRANSFER TRADE BALANCE TRADE BARRIERS TRADE LIBERALIZATION TRADE PROTECTIONS TRADING TRANSACTION TRANSACTION COSTS TRANSFER PAYMENTS TRANSITION ECONOMIES TRANSPARENCY TRUST FUND UNION URBANIZATION VOLATILITY WAGE RATES WAGES WORLD DEVELOPMENT INDICATORS WORLD ECONOMY WORLD INVESTMENT REPORT WORLD TRADE Economic growth in Sub-Saharan Africa (SSA) has averaged roughly 5 percent per year over the past decade, improving living standards and bolstering human development indicators across the continent. Stronger public institutions, a supportive, private sector focused policy environment, responsible macroeconomic management, and a sustained commitment to structural reforms have greatly expanded opportunities for countries in SSA to participate in global markets. In recent years, many countries in the region have benefited from an increasingly favorable external environment, high commodity prices, and an especially strong demand for natural resources by emerging economies, particularly China. Over the longer term, leveraging Chinese investment to support broad-based growth will require policies designed to boost the competitiveness of sectors in which China s economic rebalancing may create a comparative advantage for SSA. To date, few African countries have been able to benefit from large-scale Chinese investment outside the resource sector. However, as China s growth slows and its economy shifts toward a more consumption-driven model, it is likely that global demand for resource imports will slow as well. Countries with the most heavily concentrated export mix, particularly in the mineral and oil sectors are the most vulnerable to China s economic rebalancing and should be ready to adopt measures to mitigate the impact of negative terms-of-trade shocks. By contrast, as wage rates in China continue to rise and firms refocus their attention on domestic demand, countries in SSA will be well positioned to exploit emerging opportunities for investment in export-oriented manufacturing. Ethiopia provides an instructive example, as its inexpensive yet relatively skilled labor force, coupled with the government s proactive efforts to court Chinese investors, have enabled Ethiopia to attract substantial investments in labor-intensive industries. Infrastructure enhancement, workforce development, and good-governance reforms offer a promising strategy for many countries in the region. Although the establishment of industrial zones has yielded mixed results, several salient success stories warrant careful attention. This report discusses how Africa could take advantage of the untapped opportunities offered by China s progressively intensifying investment and trade ties with SSA. It is hoped that this analysis will enrich the ongoing dialogue between policy makers, private firms, and civil society regarding China s increasingly important role in the growth and development of Sub-Saharan Africa. 2015-04-27T20:18:35Z 2015-04-27T20:18:35Z 2015-03 Working Paper http://documents.worldbank.org/curated/en/2015/03/24177102/china-africa-expanding-economic-ties-evolving-global-context http://hdl.handle.net/10986/21788 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper Africa East Asia and Pacific Sub-Saharan Africa China |