Will the World Bank’S Vision Materialize? Relocating China’s Factories to Sub‐Saharan Africa, Flying‐Geese Style

APEC Discussion Paper No. 70

43 Pages Posted: 1 Aug 2012

See all articles by Terutomo Ozawa

Terutomo Ozawa

East-West Center

Christian Bellak

WU, Vienna University of Economics and BA

Date Written: May 1, 2011

Abstract

A number of studies have recently explored China’s growing - yet still nascent - manufacturing investments in sub-Saharan Africa, which the World Bank hopes to see further expanded so as to ignite industrialization. These studies have looked mainly at the Africa-side situation (i.e., what is happening in the host region). Instead, this paper focuses on China-side factors that may motivate the country to relocate factories to the host region on a significant scale (i.e., the 'push' factors) and touches on the institutional issues involved in this hoped-for scheme of industrial transplantation. The central question addressed in this study is whether the World Bank’s wish will actually come true. China’s potential in this scenario is assessed in terms of the 'flying-geese' growth model that explains how comparatively disadvantaged industries in such a rapidly catching-up economy as China’s may be transplanted overseas. This paper concludes that at the moment, China’s capacity to transform the sub-Saharan region into a vibrant manufacturing base via FDI is still underdeveloped and quite limited.

Keywords: China’s manufacturing investment in Africa, flying-geese growth model, foreign direct investment

JEL Classification: F21, O24, O43, O53, O55

Suggested Citation

Ozawa, Terutomo and Bellak, Christian, Will the World Bank’S Vision Materialize? Relocating China’s Factories to Sub‐Saharan Africa, Flying‐Geese Style (May 1, 2011). APEC Discussion Paper No. 70. Available at SSRN: https://ssrn.com/abstract=2121235 or http://dx.doi.org/10.2139/ssrn.2121235

Terutomo Ozawa

East-West Center ( email )

1601 East-West Road
Honolulu, HI 96848-1601
United States

Christian Bellak (Contact Author)

WU, Vienna University of Economics and BA ( email )

Welthandelsplatz 1
Vienna, Vienna 1020
Austria
00431313364505 (Phone)

HOME PAGE: http://https://www.wu.ac.at/u/bellak/

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