An Analysis of the Impact of Chinese Competition on Zimbabwe’s Manufacturing Exports in Third Markets

Fanuel Hazvina

doi:10.6007/ijarems/v10-i1/9803

Abstract

An Analysis of the Impact of Chinese Competition on Zimbabwe’s Manufacturing Exports in Third Markets

Highlights

China has received enormous attention from both developed and developing countries since its economic boom in 1978
Constant Market Share Analysis of Zimbabwe and Chinese Exports The Index of Competitive Threat (ICT) has been criticised because of its failure to provide the magnitude of the impact (Jenkins, 2013)
Losses to China were experienced in South Africa (1.8 percent), Zambia (2.33 percent), UAE (0.71 percent) and Mozambique (0.18 percent) whilst market share gains were recorded in Belgium, France and Malawi

Summary

Introduction

China has received enormous attention from both developed and developing countries since its economic boom in 1978. China presents both challenges and opportunities whilst developed countries view China as a threat to their world dominance. Developing countries are concerned with Chinese imports implications on employment, price level, innovation and crowding out products in both domestic and third markets (Giovannetti et al, 2010; Eichengreen; et al, 2004; Jenkins, 2012, Giovannetti & Sanfilippo, 2009). In addition to concerns on displacement of Sub Saharan Africa’s local production in domestic markets, there have been arguments that Chinese exports have crowded out other developing countries’ exports in third markets (Jenkins & Edwards, 2013; Geda & Meskel, 2008). Jenkins & Edwards, (2006), Kaplinsky et al, n.d. and Giovannetti & Sanfilippo (2009) identified a number of SSA countries whose exports were threatened by increased Chinese competition

Objectives

Results

Conclusion