Does FDI from China matter for Growth in African Economies?

Abstract: The outcomes of FDI have been examined in several studies throughout recent years. Most examinations acknowledge that FDI is a usual positive for the host country. FDI can create direct effects such as wealth flow to the acquiring country, job production, and technology transfer as well as a show impacts in the form of improved productivity, innovation and education. Adverse effects emerge when the foreign corporation goes to join to the host country and/or eliminate the advantages from the host country. Several examples of FDI serve to influence on the host country adversely. This study was accompanied by regression analysis with data from different sources, the period of the analysis is between 2001 and 2012. However, we could not draw any conclusions due to insignificant results, our regression suggests that FDI from China is positively related but the effect is not significant. We believe the result is affected by the fact that total FDI combines a broader range of FDI types and suggest further inquiry on the matter. In recent year FDI from China has increased in African economies and is expected to increase in light of China's one belt one road initiative. In this paper, we explore the impact of Chinese FDI on growth in African economies in a cross-country growth regression framework. There is no evidence that FDI from China affects growth in African Economies