+

Chinese Investment in Africa Danielle A. Daley Hermila Yifter

+Question I

What are the economic affects on African nations in terms of GDP (per) capita due Chinese investment?

+Question II

Why is China investing in Africa (motives)?

+Hypothesis

From limited research, we have come to the conclusion that there is a positive correlation between growth in GDP in Africa and increase in Chinese investment

+Motives and Factors

To seek lower cost for their operations and productions

To seek foreign markets

To seek resources

To seek strategic assets

To diversify

Type of government

+African Countries

Sudan

Angola

Nigeria

Ethiopia

Zambia

South Africa

Algeria

+GDP

Angola Ethiopia

+GDP

Sudan Zambia

+Types of Investment

http://www.heritage.org/research/projects/china-global-investment-tracker-interactive-map

+Selection Problem

Did China start to invest in these specific countries, because they knew there was potential profit?

Did Chinese investment cause the GDP to increase?

+Appeal of Chinese Investment

“ In contrast to western financial institutions, China employs a no strings attached method of investment in a resources- for – infrastructure model.” – Laufman, Adam Chinese Investment in Africa (2005)

+Take Away Points

Chinese Investment in China does affect African nation’s GDP

Compare GDP of Africa and FDI of China

Main motives of China in African nations are self – interested in natural resources and strategic assets

Our research questions does have mutual causation, but we are focusing does Chinese investment cause growth in GDP