The Effect of China’s Infrastructure Assistance on Africa's Economic Transformation

Abstract

China's growing investment is transforming the African economy. China's infrastructure aid to Africa is constantly growing and diversifying. Quality and well-developed infrastructure is crucial for expanding African economy, strengthening competitiveness, and improving African's quality of life. This article examines the impact and bottleneck restrictions of population, resources, and industrial policy on Africa's economic transition. The following section analyzes the impact of Chinese infrastructure aid on the economic transformation of Africa, including human capital, industrial clusters, and industrial upgrading. Based on panel data from 2003 to 2022, a quantitative research method analyses China-Africa investment and African economic transformation, comparing to Japan in order to better comprehend the mechanism. In conclusion, an effort is made to elucidate the rationale behind Chinese infrastructure aid and economic change in Africa, together with policy recommendations for future investment and development.