The Effects of Chinese trade on Industrialization in Sub Saharan Africa

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2019-08-01

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en

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In the last two decades the trade relations between China and countries in Sub Saharan Africa have intensified. This has led to a debate about the effects of these new relations on development in Africa. This thesis aims to contribute to this by analyzing the effects of Chinese exports on industrialization in Sub Saharan Africa. Chinese exports can both positively -by providing inputs for industrial production- and negatively -by creating competition- affect industrialization. Two models are used to analyze these effects. First a Fixed-effects model is employed to analyze the effects over time. After that a Heckman model is used to deal with a selection bias in the sample. There is a differentiation in the amount of goods that China exports to the countries in the sample. A grouping was made based on this differentiation and the effects for these two groups were analyzed. Whilst Chinese exports to countries in Sub Saharan Africa have no effect over time, the Heckman model indicates that these Chinese exports have a significant effect. But these effects differ per country depending on the amount of goods that China exports to a country. Further research could further look into this differentiation of effects.

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Faculteit der Managementwetenschappen