Template-type: ReDif-Paper 1.0
Author-Name: Habiyaremye, Alexis
Author-Email: alexis.habiyaremye@antalya.edu.tr
Author-workplace-name: Department of Economics, Antalya International University
Title: Is Sino-African trade exacerbating resource dependence in Africa?
Abstract: Over the past decade, trade between China and Africa has rapidly 
	 expanded and has led to strong growth rates in Africa mainly buoyed by 
	 natural resource export. The boom in trade has partly been made possible 
	 by the use of resource-for-infrastructure swap agreements (the so-called 
	 "Angola-mode deals"), in which Chinese companies finance and build 
	 infrastructure in Africa in exchange for access to natural resources. 
	 The concomitant increase in resource export to China has however raised 
	 serious concerns that these trade arrangements may reinforce Africa's 
	 resource dependence rather than reduce it. In this article we use a 
	 dynamic panel data model to examine whether the Angola-mode deals have 
	 reinforced resource dependence and impeded export diversification in 
	 African countries. Our results indicate that by helping African 
	 countries reduce existing infrastructure bottlenecks, 
	 resources-for-infrastructure swap deals enabled them to increase their 
	 diversification capacity. 
Keywords: Africa, China, trade, resource export, resource dependence, Angola-mode,
	 infrastructure, natural resources, export diversification
Classification-JEL: F40, O13, O33, O55, Q32 
Series: UNU-MERIT Working Papers
Creation-Date: 20151123
Number: 2015-046
File-URL: https://unu-merit.nl/publications/wppdf/2015/wp2015-046.pdf
File-Format: application/pdf
File-Size: 275 kb
Handle: RePEc:unm:unumer:2015046