Chinese foreign direct investment in Africa : exploitation or value creation?

Abstract

Since the turn of the century Chinese foreign direct investments to developing countries have been growing rapidly and several question regarding these investments have asked. This paper takes a closer look at the available information concerning such investments, to draw a picture of the effects from FDI on economic growth. At the end of the paper, a new analysis based on sector data and modern statistical methods is performed to shed new light on the effects from FDI on economic growth. By combing sector data from UNCTAD and interaction this paper is able to tell a more nuanced picture of the sector dependence of FDI and economic growth. Finally, a conclusion based on the analysis and information concerning the Chinese foreign direct investments is presented to give a better understanding of the Chinese investment in Africa.