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China's relationship with Africa has grown exponentially over the last decade with US$95 billion in bilateral trade in 2008 and US$5.4 billion of Chinese investment in Africa for the same year. The growth of Sino-African relations also has an impact on the role of traditional development partners in Africa in particular in the aftermath of the 2008 financial crisis, which has already led some traditional development partners to reduce their aid budgets and subsequently their Official Development Assistance (ODA) flows to Africa. The objective of this paper is to analyse different development cooperation modalities in Africa of traditional development partners and China. This requires identifying trends in aid, debt relief, general budget support, trade, preferential trade access, and investment flows of both traditional development partners and China. The paper advocates that complementarities can be built between these development modalities on a national, regional and global level. This would enhance development effectiveness, increase efficiency and create win-win situations which would be beneficial to African countries, China and traditional development partners. [ABSTRACT FROM AUTHOR]

In the last thirty years, remarkable achievements have been made in China's poverty reduction course. The dramatic fall in China's poor can be attributed mainly to a high rate of economic growth, government poverty reduction policies and targeted programmes and pro-poor macroeconomic and industrial policies. This paper focuses on China's poverty reduction policies and programmes and their impact on the poor regions and poor households. Lessons are drawn for poverty reduction and economic development in African countries. The paper also explores the potential for collaboration in poverty reduction between China and African countries and recommendations are made for the governments and donor agencies. [ABSTRACT FROM AUTHOR]

I perform Arellano-Bond GMM estimations using panel data over the period 1995-2008 and explore the growth effects of Africa's trade with China, distinguishing between the effect of imports and the effect of exports, and controlling for the role of export concentration. Four important results are obtained from the empirical analysis. First, there is no empirical evidence that exports to China enhance growth unconditionally. Second, the results suggest that export concentration enhances the growth effects of exporting to China, implying that countries which export one major commodity to China benefit more (in terms of growth) than do countries that have more diversified exports. Third, contrary to the widely held view that increasing imports from China would have a negative effect, the empirical results show that the share of China in a country's total imports has a robust positive effect on growth. Finally, the evidence suggests that there is an inverted-U relationship between exports to developed countries and growth in Africa. Overall, the results seem to provide support for the hypothesis of growth by destination (i.e., that where a country exports matters for the exporting country's growth and development). I draw on these findings to outline some policy implications. [ABSTRACT FROM AUTHOR]

This paper considers whether trade between China and sub-Saharan Africa results in productivity-enhancing technology transfers to sub-Saharan African manufacturing firms. As trade flows between countries potentially results in interactions that lead to technological improvements in the production of goods and services, we parameterize the level of total factor productivity for African manufacturing firms as a function of foreign direct investment flow, and for the country in which it operates, trade openness with China, and its interaction with foreign direct investment. With micro-level data on manufacturing firms in five sub-Saharan African countries, we estimate the parameters of firm-level production functions between 1992 and 2004. Our parameter estimates reveal that across the firms and countries in our sample, there is no relationship between productivity-enhancing foreign direct investment and trade with China. In addition, increasing trade openness with China has no effect on the growth rate of total factor productivity. To the extent that total factor productivity and its growth is a crucial determinant of economic growth and living standards in the long run, our results suggest that increasing trade openness with China is not a long-run source of higher living standards for sub-Saharan Africa. [ABSTRACT FROM AUTHOR]

Since generating sustained economic growth in Africa remains one of the most pressing challenges to development, it is imperative that Africa-specific determinants of economic growth are investigated. At the same time, in spite of recent slight slowdown, China's economic growth and its capacity to move in thirty years from underdevelopment and extreme poverty to an emerging global economic power had attracted the attention of many developing countries, including those in Africa. Some key questions arise: Can China serve as a growth model for Africa? And what lessons can we draw from the Chinese experience of soaring economic growth? We therefore investigate the determinants of economic growth in Africa (North and sub-Saharan Africa), using an Africa-only sample with five non-overlapping three-year averages of cross-sectional data between 1996 and 2010. We also do the same for China for the period, 1980 to 2010, while discussing recent trade, investment and aid/debt relations between Africa and China. Our results suggest that domestic investment, net ODA inflows, education, government effectiveness, urban population, and metal prices positively and significantly affect Africa's economic growth. For China, the key factors driving its economic growth are domestic investment, trade openness, initial income, and rural share of the population. Factors driving down China's growth include inflation rate, domestic credit to the private sector, net ODA inflows, population growth, telephone density, and oil and agricultural/raw materials prices. One key finding is that while Africa is almost twice as open as China, openness does not positively and significantly affect Africa's growth, unlike in China. A principal source is that Africa imports (mainly consumer goods) more than it exports while the reverse is true for China. Moreover, the structure of Africa's exports is biased towards traditional primary commodity exports unlike China that has rapidly shifted towards manufactures. In addition, Chinese domestic investment is about double that of Africa. The key lessons for Africa from the soaring Dragon's experience are discussed. [ABSTRACT FROM AUTHOR]