Abstract
In its quest for oil and minerals, China has developed increasingly close economic relations with Africa through investment and aid. The World Bank recently called upon China to transplant labor-intensive factories onto the continent. This raises the question of whether such an industrial relocation will be done so as to jumpstart local economic development — as previously seen across East Asia and as described in the flying-geese (FG) paradigm of FDI. Judging from Asia's FG model, there are three crucial inducements for FDI in low-end manufacturing: (i) labor costs, (ii) exchange rates, and (iii) institutions.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: 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.