An Econometric Analysis of Trade, Culture and Healthcare Cooperation between China and Africa

Abstract

China has continuously strengthened and expanded its cooperation with Africa, its areas of intervention in the African continent are many and varied throughout the 2000's. After working hard to build strong bilateral relations by attributing political, trade and economic priorities, both partners have established strategic objectives with a view to promote the culture and healthcare cooperation. This paper examined the trade, culture and healthcare cooperation between China and Africa through the econometric analysis while taking into consideration all the African countries. The research used panel data and utilized the econometric model in assessing the impact of trade, culture and healthcare cooperation on African countries’ economic growth. The panel data will cover 16 years (2003-2018). The secondary data was collected from the 54 African countries independently then made aggregates of the variable to represent Africa. The data were analyzed using SPSS software to get the descriptive statistics and regression of the economic growth (GDP) and (Imports, Exports, FDI, Culture and Healthcare). From the regression analysis, it can be affirmed that imports and exports have a positive and significant impact on the GDP. Then FDI has a negative and insignificant effect on economic growth; on the other hand, the culture and healthcare have a positive influence on African economy but insignificant and significant respectively. It can be affirmed that the econometric analysis of the Trade cooperation between China and Africa has affirmed that Imports and exports enhance the growth of African countries’ economies. On the contrary, foreign direct investments have resulted in the exploitation of African human and capital resources for the benefit of a foreign country, which has a negative impact on economic growth.