Business Commons^™

Inclusive Growth In Africa: Are Chinese Investment And Local Industry Participation Compatible?, Emmanuel T. Kodzi

Faculty Publications

Purpose - This study set out to explore whether increasing Chinese FDI is associated with rising contributions of local industry in African countries connected to the Belt and Road Initiative (BRI). The existence of cooperative industry linkages between Chinese investments and local businesses is a necessary condition for achieving the mutual benefits asserted by the BRI.

Design/methodology/approach - Under growing FDI, we framed increasing local industry contribution as indicative of existing industry linkages. Using principal component analysis and multiple regression on collated country-level data, we examined relationships between key industry output variables and several independent variables representing Chinese investment and …