Mattieu- Week 6_ Developmental impact of Chinese firms in Africa

Mattieu- Week 6_ Developmental impact of Chinese firms in Africa

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DO CHINESE LARGE CORPORATIONS OPERATING IN AFRICA FACILITATE OR CONSTRAIN THE DEVELOPMENT OF LOCAL SUPPLIERS? The Case of Sub Saharan Africa Mattieu Theron THRPIE002
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CHINESE COMPANIES IN AFRICA SOEs (Large) Central Government (national interests) Provincial Government (private interests) Private-Sector (Large – Medium-Small enterprises) Incorporated in China Incorporated in Africa (SSA) Anonymous Entrepreneurs All have different effects on local suppliers and industries
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SOEs & Large Corporations DIRECT INDIRECT COMPLEMENTAR Y COMPETITIVE PRICES BOPs CHINESE IMPACT
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Channel Impacts Direct Indirect Trade Complementary Inputs for industries Cheap consumption goods Higher global prices for SSA exports Competitive Displacement of existing and potential local producers by cheap Chinese products Competition in external markets – falling prices and falling market shares Production & FDI Complementary Chinese FDI in SSA, particularly in fragile states
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