The Impact of China’s FDI on Economic Growth: Evidence from Africa with a Long Memory Approach
Authors
Luis A. Gil-Alana
Gloria Claudio-Quiroga
Andoni Maiza-Larrarte
Type
Article
Journal
Emerging Markets Finance and Trade
Pages
1753-1770
Date
11-06-2021
Abstract

This paper deals with the relationship between Foreign Direct Investment from China in Africa and the growth level in five African countries. Based on the high degrees of persistence observed in the data, we use techniques based on long memory models, and our results indicate that of the five countries examined, namely Kenya, Zimbabwe, Zambia, Nigeria and South Africa, only for Nigeria do we find a significant positive relationship between the two variables though under some assumptions, this evidence is also found in the cases of Kenya and South Africa. Several arguments are put forward at the end of the article to justify these results.