The impacts of Chinese FDI on domestic investment and economic growth for Africa

This study examines the role of domestic governance quality on the relationship between Chinese foreign direct investment (FDI), domestic investment, and African countries’ economic growth. The study utilized a larger dataset of Chinese FDI to 44 African countries applying the two-step system GMM es...

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Autores principales: Miao Miao, Dinkneh Gebre Borojo, Jiang Yushi, Tigist Abebe Desalegn
Formato: article
Lenguaje:EN
Publicado: Taylor & Francis Group 2021
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fdi
Acceso en línea:https://doaj.org/article/03cb2fc237a44ce5b412c18bd5ca431b
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spelling oai:doaj.org-article:03cb2fc237a44ce5b412c18bd5ca431b2021-12-02T17:59:18ZThe impacts of Chinese FDI on domestic investment and economic growth for Africa2331-197510.1080/23311975.2021.1886472https://doaj.org/article/03cb2fc237a44ce5b412c18bd5ca431b2021-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2021.1886472https://doaj.org/toc/2331-1975This study examines the role of domestic governance quality on the relationship between Chinese foreign direct investment (FDI), domestic investment, and African countries’ economic growth. The study utilized a larger dataset of Chinese FDI to 44 African countries applying the two-step system GMM estimation method for 2003–2017. This study’s findings reveal that Chinese FDI’s impact on economic growth is conditional to improving African countries’ aggregate and each component of individual governance indicators used to represent the countries’ institutional quality. The impact of Chinese FDI on African countries’ domestic investment is robustly positive. Besides, improvement in the governance environment stimulates the effect of Chinese FDI on domestic investment. More specifically, control of corruption, government effectiveness, and voice and accountability have mediating roles in the nexus of Chinese FDI and African countries’ domestic investment. Thus, African countries aiming to attract Chinese FDI and promote their economic growth and domestic investment need to improve governance quality.Miao MiaoDinkneh Gebre BorojoJiang YushiTigist Abebe DesalegnTaylor & Francis Grouparticlefdidomestic investmenteconomic growththe two-step system gmm estimatorchina-africaBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 8, Iss 1 (2021)
institution DOAJ
collection DOAJ
language EN
topic fdi
domestic investment
economic growth
the two-step system gmm estimator
china-africa
Business
HF5001-6182
Management. Industrial management
HD28-70
spellingShingle fdi
domestic investment
economic growth
the two-step system gmm estimator
china-africa
Business
HF5001-6182
Management. Industrial management
HD28-70
Miao Miao
Dinkneh Gebre Borojo
Jiang Yushi
Tigist Abebe Desalegn
The impacts of Chinese FDI on domestic investment and economic growth for Africa
description This study examines the role of domestic governance quality on the relationship between Chinese foreign direct investment (FDI), domestic investment, and African countries’ economic growth. The study utilized a larger dataset of Chinese FDI to 44 African countries applying the two-step system GMM estimation method for 2003–2017. This study’s findings reveal that Chinese FDI’s impact on economic growth is conditional to improving African countries’ aggregate and each component of individual governance indicators used to represent the countries’ institutional quality. The impact of Chinese FDI on African countries’ domestic investment is robustly positive. Besides, improvement in the governance environment stimulates the effect of Chinese FDI on domestic investment. More specifically, control of corruption, government effectiveness, and voice and accountability have mediating roles in the nexus of Chinese FDI and African countries’ domestic investment. Thus, African countries aiming to attract Chinese FDI and promote their economic growth and domestic investment need to improve governance quality.
format article
author Miao Miao
Dinkneh Gebre Borojo
Jiang Yushi
Tigist Abebe Desalegn
author_facet Miao Miao
Dinkneh Gebre Borojo
Jiang Yushi
Tigist Abebe Desalegn
author_sort Miao Miao
title The impacts of Chinese FDI on domestic investment and economic growth for Africa
title_short The impacts of Chinese FDI on domestic investment and economic growth for Africa
title_full The impacts of Chinese FDI on domestic investment and economic growth for Africa
title_fullStr The impacts of Chinese FDI on domestic investment and economic growth for Africa
title_full_unstemmed The impacts of Chinese FDI on domestic investment and economic growth for Africa
title_sort impacts of chinese fdi on domestic investment and economic growth for africa
publisher Taylor & Francis Group
publishDate 2021
url https://doaj.org/article/03cb2fc237a44ce5b412c18bd5ca431b
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