Greening African economy: The role of Chinese investment and trade

Global warming and the rapid depletion of natural assets have made many countries anxious to find green growth strategies, including global partnerships and international business. China has positioned itself as the right partner for sustainable growth and development in Africa through different eng...

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Published inSustainable development (Bradford, West Yorkshire, England) Vol. 32; no. 1; pp. 1001 - 1012
Main Authors Chen, Xi, Liu, Binyi, Tawiah, Vincent, Zakari, Abdulrasheed
Format Journal Article
LanguageEnglish
Published Chichester, UK John Wiley & Sons, Inc 01.02.2024
Wiley Periodicals Inc
Subjects
Africa
China
Climate change
Depletion
Development strategies
Economic growth
export
foreign direct investment
Foreign investment
Global warming
green growth
Green products
import
International business
International trade
Natural resources
Partnerships
Policy making
Sustainability
Sustainable development
China
Africa
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Summary:Global warming and the rapid depletion of natural assets have made many countries anxious to find green growth strategies, including global partnerships and international business. China has positioned itself as the right partner for sustainable growth and development in Africa through different engagement routes. In this study, we employ fixed effects on a sample of 27 countries over 17 years to examine the impact of China's foreign direct investment and trade on green growth in Africa. Our results show that China's investment and trade affect green growth differently. We find that foreign direct investment and export have a negative impact on green growth. Contrarily, we find importation from China to increase green growth. Our results suggest that the growing presence of China in Africa through direct investment and exportation of natural resources is likely to hamper achieving the Sustainable Development Growth goals. However, countries can harness some benefits from importing sustainable products from China. Our study extends the green growth literature and informs policymakers of the need to pay attention to the effects of growing Chinese‐Africa engagement on attaining sustainable and greener growth. The results are robust to different identification techniques, including two‐stage least square and system generalised method of movement.
Bibliography:The authors contributed equally to the paper.
ISSN:0968-0802
1099-1719
DOI:10.1002/sd.2713