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Is Sino-Africa Bilateral Trade More than Resource Focused? The Rhetoric and the Reality

Is Sino-Africa Bilateral Trade More than Resource Focused? The Rhetoric and the Reality AbstractThis study uses an augmented dynamic gravity model to identify the main contributing factors influencing bilateral trade between China and 46 African countries in general and to test whether Sino-Africa bilateral trade is more than resource focused in particular. Natural resource was captured by “oil exports” and “ores & metal exports,” and the empirical analysis verifies only “oil” not “ores & metals” to significantly influence the growing Sino-Africa bilateral trade. Thus, the empirical result partially supports the widely held view that natural resources are critical to bilateral trade between China and African countries. However, it is not true that Chinese engagement in Africa is exclusively due to natural resources as always portrayed. Apart from the oil factor, some other significant factors for the growing bilateral trade are identified. The study indicates there is a huge opportunity and potential for rapid expansion of Sino-Africa bilateral trade that is mutually beneficial. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png African and Asian Studies Brill

Is Sino-Africa Bilateral Trade More than Resource Focused? The Rhetoric and the Reality

African and Asian Studies , Volume 18 (4): 33 – Dec 31, 2019

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Publisher
Brill
Copyright
Copyright © Koninklijke Brill NV, Leiden, The Netherlands
ISSN
1569-2094
eISSN
1569-2108
DOI
10.1163/15692108-12341436
Publisher site
See Article on Publisher Site

Abstract

AbstractThis study uses an augmented dynamic gravity model to identify the main contributing factors influencing bilateral trade between China and 46 African countries in general and to test whether Sino-Africa bilateral trade is more than resource focused in particular. Natural resource was captured by “oil exports” and “ores & metal exports,” and the empirical analysis verifies only “oil” not “ores & metals” to significantly influence the growing Sino-Africa bilateral trade. Thus, the empirical result partially supports the widely held view that natural resources are critical to bilateral trade between China and African countries. However, it is not true that Chinese engagement in Africa is exclusively due to natural resources as always portrayed. Apart from the oil factor, some other significant factors for the growing bilateral trade are identified. The study indicates there is a huge opportunity and potential for rapid expansion of Sino-Africa bilateral trade that is mutually beneficial.

Journal

African and Asian StudiesBrill

Published: Dec 31, 2019

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