Tuesday, July 30, 2019

Comparing Chinese and Western Commercial Engagement in Africa Based on Governance Quality

The China Africa Research Initiative at Johns Hopkins School of Advance International Studies published in July 2019 a study titled "Comparing the Determinants of Western and Chinese Commercial Ties with Africa" by David G. Landry.

The paper compares the determinants of Chinese and Western commercial activities through quantitative modeling. It finds that governance quality among African countries plays a positive role in predicting their commercial activity, in terms of their foreign direct investment inflows, exports, and imports with both Western countries and China. It also finds that governance outcomes among African countries does not impact their commercial ties with China and the West differently. Of the four indicators investigated, only corruption systematically impacts Chinese commercial activity differently than that of Western activity.