Disentangling China's Infrastructure Investment in Africa: A Symbiotic Partnership or an Unequal Substitute for African Resources?

Bo, Hong; Johan, Sofia; Lawal, Rodiat; Sakariyahu, Rilwan

Abstract

This paper examines how China's infrastructure investment influences African exports to China. We analyse data from 46 African countries and 14 industries that have received China's infrastructure investment from 2005 to 2019. Our results show that China's infrastructure investment in the primary sector has led to more African exports to China (i.e. resource‐seeking). In contrast, investment in the non‐primary sector has had a substitution effect on African exports to China (i.e. market‐seeking). We find that China's infrastructure investment in Africa is driven mainly by resource‐seeking. We further document that both the host country's endowment of natural resources and the resources for infrastructure arrangement moderate the positive impact of China's infrastructure investment on African exports to China. These results consistently confirm that China's infrastructure investment in Africa has facilitated China's access to African natural resources.

Citation

Bo, H., Johan, S., Lawal, R., & Sakariyahu, R. (online). Disentangling China's Infrastructure Investment in Africa: A Symbiotic Partnership or an Unequal Substitute for African Resources?. British Journal of Management, https://doi.org/10.1111/1467-8551.12912

• Journal Article Type: Article
• Acceptance Date: Feb 17, 2025
• Online Publication Date: Mar 31, 2025
• Deposit Date: Apr 5, 2025
• Publicly Available Date: Apr 5, 2025
• Journal: British Journal of Management
• Print ISSN: 1045-3172
• Electronic ISSN: 1467-8551
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• DOI: https://doi.org/10.1111/1467-8551.12912
• Publisher URL: https://onlinelibrary.wiley.com/doi/10.1111/1467-8551.12912