China in Africa: A Macroeconomic Perspective

33 Pages Posted: 1 May 2011  

Benedicte Vibe Christensen

International Monetary Fund (IMF)

Date Written: November 5, 2010

Abstract

In recent years, China has dramatically expanded its financing and foreign direct investment to Africa. This expansion has served the political and economic interests of China while providing Africa with much-needed technology and financial resources. This paper looks at China's role in Africa from the Chinese perspective. The main conclusion is that China, as an emerging global player and one of Africa's largest trading and financial partners, can no longer ignore the macroeconomic impact of its operations on African economies. Indeed, it is in China's interest that its engagement leads to sustainable economic development on the continent. Trade, financing, and technology transfer must continue at a pace that African economies can absorb without running up against institutional constraints, the capacity to service the costs to future budgets, or the balance of payments. A key corollary is that China should show good governance in its own operations in Africa. Finally, macroeconomic analysis needs to be supported by better analytical data and organization of decision-making to support China's engagement in Africa.

Keywords: China, Africa, foreign direct investment, trading, technology transfer, good governance, macroeconomic analysis

Suggested Citation

Christensen, Benedicte Vibe, China in Africa: A Macroeconomic Perspective (November 5, 2010). Center for Global Development Working Paper No. 230. Available at SSRN: https://ssrn.com/abstract=1824443 or http://dx.doi.org/10.2139/ssrn.1824443

Benedicte Vibe Christensen (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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