+ chinese investment in africa danielle a. daley hermila yifter
TRANSCRIPT
+
Chinese Investment in Africa Danielle A. Daley Hermila Yifter
+Question I
What are the economic affects on African nations in terms of GDP (per) capita due Chinese investment?
+Question II
Why is China investing in Africa (motives)?
+Hypothesis
From limited research, we have come to the conclusion that there is a positive correlation between growth in GDP in Africa and increase in Chinese investment
+Motives and Factors
To seek lower cost for their operations and productions
To seek foreign markets
To seek resources
To seek strategic assets
To diversify
Type of government
+African Countries
Sudan
Angola
Nigeria
Ethiopia
Zambia
South Africa
Algeria
+GDP
Angola Ethiopia
+GDP
Sudan Zambia
+Types of Investment
http://www.heritage.org/research/projects/china-global-investment-tracker-interactive-map
+Selection Problem
Did China start to invest in these specific countries, because they knew there was potential profit?
Did Chinese investment cause the GDP to increase?
+Appeal of Chinese Investment
“ In contrast to western financial institutions, China employs a no strings attached method of investment in a resources- for – infrastructure model.” – Laufman, Adam Chinese Investment in Africa (2005)
+Take Away Points
Chinese Investment in China does affect African nation’s GDP
Compare GDP of Africa and FDI of China
Main motives of China in African nations are self – interested in natural resources and strategic assets
Our research questions does have mutual causation, but we are focusing does Chinese investment cause growth in GDP