Chinese import dominance and structural transformation in Africa
Washingtone Onyango et al.
What the paper says
This study analyzes the effect of China’s import dominance on Africa’s structural transformation, measured through the Shapley decomposition approach. A pooled mean group Autoregressive Distributed Lag (PMG-ARDL) model is analyzed using panel data from 1995–2018 for 21 countries. We find that Chinese imports of goods and services, like those from the rest of the world, increase Africa’s structural transformation in the long-run. However, the magnitude of the coefficient for China is larger than that of the rest of the world for both goods and services (total). The Chinese impact on Africa’s structural transformation is mainly through capital goods and other commercial services (such as ICT, financial, and construction), whose coefficients are larger than those of the rest of the world. Imposing barriers on Chinese imports is not a viable option for African countries. Instead, they should pursue policies that enrich the manufacturing sector, including adopting an Africa-wide trade agreement.
3 citations
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.32 × 0.4 = 0.13 |
| M · momentum | 0.57 × 0.15 = 0.09 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.