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Chinese investment in Ghana’s manufacturing sector

Chinese investment in Ghana’s manufacturing sector
Author: Tang, Xiaoyang
Publisher: Intl Food Policy Res Inst
Total Pages: 32
Release: 2017-03-31
Genre: Political Science
ISBN:

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This paper uses Ghana as a case study to illustrate the extent to which Chinese manufacturing firms are driving manufacturing in an African country. Through a combination of desktop and field research, the author finds that the total number of Chinese manufacturing investments in Ghana indeed increased during past decade, but quite a few projects have been abandoned or not implemented because of the unfavorable investment environment. Small and large manufacturing projects can be found in different sectors, such as plastics, steel, pharmaceuticals, and others. All of the manufacturing investments target local or regional markets, either taking advantage of local raw materials or seeing opportunities in a market with little competition. Transitioning from trading to manufacturing investment and clustering are identified as the main patterns by which Chinese investors establish themselves in Ghana. Chinese firms source simple raw materials from local suppliers but import industrial supplies from abroad. Learning from Chinese business models, a few local businessmen have started their own manufacturing projects, mostly in the plastics recycling sector, but a lack of capital appears to keep some local players from moving up the value chain. Ghana’s weak economy itself is limiting technology transfer and local linkages between Chinese firms and Ghanaians.


China’s Outward Foreign Direct Investment Impact on Economic Growth in Developing Countries: Empirical Evidence from Ghana

China’s Outward Foreign Direct Investment Impact on Economic Growth in Developing Countries: Empirical Evidence from Ghana
Author: Stephen Bodybobton Antwi
Publisher: GRIN Verlag
Total Pages: 38
Release: 2012-11-28
Genre: Business & Economics
ISBN: 3656323178

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Research Paper (undergraduate) from the year 2012 in the subject Economics - Case Scenarios, Xiamen University, language: English, abstract: Foreign direct investment (FDI) is one of the economic growth stimulus due to its associated variables such as capital investment, technical know-how, knowledge transfer and managerial competence required for economic growth. In the last decade, China has emerged on the international financial scene as both financier and investment partner to African economies. Many African economies such as the oil producing and exporting ones have witnessed streams of China’s FDI in their economies whereas non-oil exporting ones have accessed some of China’s FDI in selective sectors. This paper aims at investigating the relationship between China’s FDI and economic growth in Ghana measured by real average annual domestic product (GDP) per capita growth for the period 2001-2010. By using ordinary least squares (OLS) regression model, the result indicates that China’s FDI has negative significant effect on Ghana’s economic growth. However, it exerts different effects on value added in the three economic sectors.


Chinese Manufacturing Investments and Knowledge Transfer

Chinese Manufacturing Investments and Knowledge Transfer
Author: Xiaoyang Tang
Publisher:
Total Pages: 0
Release: 2020
Genre:
ISBN:

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This study aims to shed light on the knowledge transfer effects of Chinese investment in Africa's manufacturing sector with a concrete case study of Ethiopia. As of January 2015, 117 firms were registered with the Chinese Ministry of Commerce (MOFCOM) as investing in Ethiopia, reporting to have manufacturing activities. Since 2010 the Ethiopian government has put great emphasis on boosting the manufacturing sector and developing local technological and marketing capabilities, consciously guiding FDI from China and other Asian countries to the manufacturing sector. Such efforts offer a remarkable case to explore how African agents play an active role in shaping the dynamics and outcomes of engagements with China, which thus far has been seriously under-investigated. This study finds that the effectiveness of knowledge transfer by foreign investors is largely decided by industrial conditions in the host country and forming manufacturing clusters is a helpful approach to improve learning. This paper examines knowledge transfer mechanisms between Chinese investments and Ethiopian firms, institutions, and individuals at four different levels in the manufacturing sector. The lessons learned from this case may provide insights into China-African cooperation and Africa's development process in general.


Development Paths in Africa and China

Development Paths in Africa and China
Author: Ukandi G. Damachi
Publisher: Springer
Total Pages: 267
Release: 1976-06-01
Genre: Business & Economics
ISBN: 1349027553

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The Political Economy of Chinese FDI and Spillover Effects in Africa

The Political Economy of Chinese FDI and Spillover Effects in Africa
Author: Dominik Kopiński
Publisher: Springer Nature
Total Pages: 284
Release: 2023-10-26
Genre: Business & Economics
ISBN: 3031387155

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What are the impacts of Chinese investment in Africa? Is it transforming economic development on the continent? This book is different from many other studies of this issue, as it unpacks the ‘black box’ of technological and learning spillover effects from Chinese firms to others. Rather than using econometric tools, which has now become a standard approach and come with their own set of challenges, the authors investigate the interactions between Chinese investors and African firms in terms of the transfer of technology and learning and explain why such interactions are rare. Only by understanding the reasons behind this rarity can approaches be developed to promote spillovers.


Private Chinese Investment in Africa

Private Chinese Investment in Africa
Author: Xiaofang Shen
Publisher:
Total Pages: 49
Release: 2013
Genre: Africa
ISBN:

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"Private Chinese outbound investment, not as well-known as government-led investment, offers special opportunities and challenges for Africa today. The significance of Chinese private-sector investment is already visible in the burgeoning manufacturing sector in some parts of Africa, and the trend will continue to grow in the near future. The underlying force behind this trend is the increased pressure of industrial restructuring in coastal China, a force that drives some labor-intensive firms to relocate to other parts of the developing world, including Africa. African host country governments can respond to this phenomenon with proactive development policies and strategies to maximize private Chinese investment for the benefit of their own economies"--Abstract.


China and Africa

China and Africa
Author: Richard Schiere
Publisher:
Total Pages: 160
Release: 2011
Genre: Africa
ISBN:

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Chinese Investments in Africa

Chinese Investments in Africa
Author: Anthony Yaw Baah
Publisher:
Total Pages: 544
Release: 2009
Genre: Africa, Sub-Saharan
ISBN: 9789991664941

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The Next Africa

The Next Africa
Author: Jake Bright
Publisher: Macmillan
Total Pages: 271
Release: 2015-07-21
Genre: Business & Economics
ISBN: 1466868724

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The Next Africa, an Axiom Best Business Book Award winner, will change the way people think about the continent. The old narrative of an Africa disconnected from the global economy, depicted by conflict or corruption, and heavily dependent on outside donors is fading. A wave of transformation driven by business, modernization, and a new cadre of remarkably talented Africans is thrusting the continent from the world's margins to the global mainstream. In the coming decades the magnitude of Africa's markets and rising influence of its people will intersect with other key trends to shape a new era, one in which Africa's progress finally overshadows its challenges, transforming an emerging continent into a global powerhouse. The Next Africa captures this story. Authors Jake Bright and Aubrey Hruby pair their collective decades of Africa experience with several years of direct research and interviews. Packed with profiles; personal stories, research and analysis, The Next Africa is a paradigm-shifting guide to the events, trends, and people reshaping Africa's relationship to the world. Bright and Hruby detail the cross-cutting trends prompting Silicon Valley venture capital funds and firms like GE, IBM, and Proctor & Gamble to make major investments in African economies, while describing how Africans are stimulating Milan runways, Hollywood studios, and London pop charts. The Next Africa introduces readers to the continent's burgeoning technology movement, rising entrepreneurs, groundbreaking philanthropists, and cultural innovators making an impact in music, fashion, and film. Bright and Hruby also connect Africa's transformation to its contemporary immigrant diaspora, illustrating how this increasingly affluent group will serve as the thread that pulls the continent's success together. Finally, The Next Africa suggests a fresh framework for global citizens, public policy-makers, and CEOs to approach Africa. It will no longer be "The Hopeless Continent", nor will it become an overnight utopia. Bright and Hruby offer a more nuanced, net-sum, and data-rich approach to analyzing an increasingly complex continent, reconciling its continued challenges with rapid progress. The Next Africa describes a future of a more globally-connected Africa where its leaders and citizens wield significant economic, cultural, and political power--a future in which Americans will be more likely to own African stocks, work for companies doing business in Africa, buy African hits from iTunes, see Nigerian actors win Oscars, and learn new African names connected to tech moguls and billionaires.