China’s role in mitigating poverty and inequality in Africa: an empirical query
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In: Journal of the Asia Pacific Economy, Vol. 24, No. 4, 02.10.2019, p. 645-669.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - China’s role in mitigating poverty and inequality in Africa
T2 - an empirical query
AU - NguyenHuu, Tam
AU - Schwiebert, Jörg
PY - 2019/10/2
Y1 - 2019/10/2
N2 - Using data from 1995 to 2017, this article shows that China plays a positive role in mitigating poverty and inequality in Africa. Namely, imports from China, especially imports of machinery and equipment but not manufactured goods, alleviate substantially poverty in the region. In addition, China’s foreign direct investment (FDI) and China’s engagement in infrastructure projects in the continent help not only eradicate poverty, but also narrow income inequality. However, total exports or exports of raw materials and fuels to China are irrelevant to income distribution. We also compare these impacts with the impacts of economic links with the United States (US) and find insignificant effects of the US’s imports and FDI on income distribution but some positive effects of exports to the US on poverty in Africa. Our findings are robust when both the fractional nature of poverty and inequality indices and their correlation are taken into account.
AB - Using data from 1995 to 2017, this article shows that China plays a positive role in mitigating poverty and inequality in Africa. Namely, imports from China, especially imports of machinery and equipment but not manufactured goods, alleviate substantially poverty in the region. In addition, China’s foreign direct investment (FDI) and China’s engagement in infrastructure projects in the continent help not only eradicate poverty, but also narrow income inequality. However, total exports or exports of raw materials and fuels to China are irrelevant to income distribution. We also compare these impacts with the impacts of economic links with the United States (US) and find insignificant effects of the US’s imports and FDI on income distribution but some positive effects of exports to the US on poverty in Africa. Our findings are robust when both the fractional nature of poverty and inequality indices and their correlation are taken into account.
KW - Africa
KW - China
KW - fractional probit
KW - inequality
KW - poverty
KW - Economics
UR - http://www.scopus.com/inward/record.url?scp=85068236721&partnerID=8YFLogxK
U2 - 10.1080/13547860.2019.1632645
DO - 10.1080/13547860.2019.1632645
M3 - Journal articles
AN - SCOPUS:85068236721
VL - 24
SP - 645
EP - 669
JO - Journal of the Asia Pacific Economy
JF - Journal of the Asia Pacific Economy
SN - 1354-7860
IS - 4
ER -