Abstract
The aim of the paper is to analyze the economic impact of Sub-Saharan Africa’s (SSA) engagement with emerging partners (China, India and Brazil BICs) and to determine the opportunities and challenges of the increasingly engaging with the new partners. In order to achieve the aim of the paper it estimated the most effective variables that determine the trade intensity between SSA and Chinausing Gravity model approach. The paper concluded that the most important variables that have the major effect on the value of exports of Sub-Saharan Africa to Chinawere rate of mobile telephone in China (infrastructure variable) and China FDI to Sub-Saharan Africa because much of China’s outward direct investment (ODI) in SSA is closely linked to trade. Africa’s exports to the BICs are dominated by fuels and primary commodities (mainly to China and India); the BIC’s exports to African countries are dominated by manufactured goods. Chinese FDI can be categorized as resource-efficiency—and market-seeking investments.
Highlights
Africa has a history of cooperation with the South
3‐Model results and discussion Detailed results of the model are shown in statistical Appendix; paper concluded that the most effective variables that have the major effect on the value of exports of SubSaharan Africa to China were (X5) rate of mobile telephone in China and (X7) China foreign direct investment (FDI) to Sub-Saharan Africa because much of China’s outward direct investment (ODI) in SSA is closely linked to trade
Trade between the BICs and Africa can be summarized under three key features: Africa’s exports to the BICs are dominated by fuels and primary commodities; the BIC’s exports to African countries are dominated by manufactured goods; and some African countries will gain, some will lose
Summary
Africa has a history of cooperation with the South. Its formal involvement in South– South cooperation dates back to 1955 when African and Asian nations, most of them newly independent, held a conference in Bandung, Indonesia, to promote economic and cultural cooperation and bring an end to colonialism. The Bandung Conference provided inspiration and impetus for the development of various South–South alliances in the 1960s and 1970s. It led to the creation of the Non-Aligned Movement in 1961. It provided impetus for the creation of the Group of 77 (G-77) during the first United Nations Conference on Trade and Development (UNCTAD) in 1964. The G-77 has established itself as the leading voice of the South in the global arena It has played a lead role in establishing a conceptual framework and guiding principles for South–South cooperation
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
