The paper employs revealed comparative advantage (RCA) to assess the competitiveness of the case study countries in the Chinese market. The empirical analysis revealed that even though there was a fierce competition in the labour-intensive manufacturing industry with most of the case study countries exports. However, further disaggregation revealed otherwise. It also indicated that the establishment of the Special Preferential Tariffs Treatment (SPTT) by China since 2005 has contributed to the increasing number of exported commodities to the Chinese market. The effect is reflected in the increased export revenue of most of the least developed countries (LDCs) and a secured market for such countries export products.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Literature Review
- Stylized Facts of China's Trade with Africa
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to analyze the competitiveness of Angola, Ghana, and Sudan in the Chinese market using the revealed comparative advantage (RCA) approach. It investigates the impact of China's Special Preferential Tariffs Treatment (SPTT) on the export volume of these countries. The paper also explores the implications of China's growing economic relationship with Sub-Saharan Africa, addressing questions about its motivations, policies, and potential lessons for African development.
- The competitiveness of Angola, Ghana, and Sudan in the Chinese market
- The impact of China's Special Preferential Tariffs Treatment (SPTT) on export volume
- China's motivations for engaging with Africa
- China's policies towards Africa
- The potential lessons for African development from China's economic path
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This section provides context for the research by highlighting the historical evolution of China's bilateral trade relations with Sub-Saharan Africa. It emphasizes the shift from politically motivated ties to an economic focus, particularly driven by China's growing demand for energy and resources.
- Literature Review: This chapter analyzes existing research on trade between China and Africa, demonstrating the significant growth in trade values. It summarizes findings regarding African countries' reliance on China as a market for their export products, particularly oil, and explores the implications of China's imports for Sub-Saharan African economies.
- Stylized Facts of China's Trade with Africa: This chapter presents an overview of Africa's economic situation, focusing on its population, GDP, and growth rates. It highlights the continent's dependence on commodity exports and the impact of the 2008 financial crisis.
Schlüsselwörter (Keywords)
The main keywords and focus topics of this paper are revealed comparative advantage, bilateral trade, China, Sub-Saharan Africa, Special Preferential Tariffs Treatment (SPTT), export competitiveness, economic development, and resource dependence. The paper explores the implications of China's growing economic influence on Sub-Saharan Africa, examining the potential benefits and challenges for the region's development.
What is Revealed Comparative Advantage (RCA)?
RCA is an economic metric used to calculate the relative advantage or disadvantage of a specific country in a certain class of goods or services as evidenced by trade flows.
How has China's SPTT policy affected African exports?
The Special Preferential Tariffs Treatment (SPTT) has contributed to an increasing number of commodities exported from Africa to China and boosted export revenue for least developed countries (LDCs).
Which African countries are focused on in this study?
The research focuses on the competitiveness of Angola, Ghana, and Sudan in the Chinese market.
What are China's primary motivations for trade with Africa?
China's engagement is largely driven by its growing demand for energy and natural resources to fuel its domestic industrial expansion.
What are the challenges for African development in this partnership?
Key challenges include heavy dependence on raw commodity exports and fierce competition in labor-intensive manufacturing sectors.
What lessons can Africa learn from China's economic path?
Africa can look at China's strategies for industrialization, infrastructure development, and how to leverage international trade for domestic growth.
