Advanced

The impact of China, the EU and the US on Africa’s economic growth through trade linkages.

Alozious, Juuko LU (2014) NEKN01 20141
Department of Economics
Abstract
China, the EU and the US are the top 3 destinations for exports from Africa. The implication for this relationship is that economic growth in these economic giants will have an effect on the aggregate demand of African economies through trade. Additionally, the emergence of China as an economic power has enabled it to increase its influence on the global stage on various fronts. African countries appear to be among the major beneficiaries of the industrialisation and growth of the Chinese economy as trade between China and Africa has increased significantly during the past years. This has enabled Africa to decrease its dependence on the EU and the US as its traditional markets for its exports a factor which could have enabled the... (More)
China, the EU and the US are the top 3 destinations for exports from Africa. The implication for this relationship is that economic growth in these economic giants will have an effect on the aggregate demand of African economies through trade. Additionally, the emergence of China as an economic power has enabled it to increase its influence on the global stage on various fronts. African countries appear to be among the major beneficiaries of the industrialisation and growth of the Chinese economy as trade between China and Africa has increased significantly during the past years. This has enabled Africa to decrease its dependence on the EU and the US as its traditional markets for its exports a factor which could have enabled the impressive economic during the great recession while many other countries were paying a high price. To investigate how Africa’s key trade partners affect its growth, an autoregressive model is estimated using fixed effects annul panel data for the period 2000-2012 based on 35 Sub-Saharan Africa countries. The model is estimated by Generalized Methods of Moments. The estimated results reveal that the EU has the biggest impact on Africa’s economic growth in absolute terms followed by the US and China respectively. The data also fails to support the hypothesis that Africa impressive economic performance during the recent crisis is credited to improved trade ties with China over the years. (Less)
Please use this url to cite or link to this publication:
author
Alozious, Juuko LU
supervisor
organization
course
NEKN01 20141
year
type
H1 - Master's Degree (One Year)
subject
keywords
Great recession, EU, Economic Growth, China, Africa, US, Trade.
language
English
id
4584739
date added to LUP
2014-08-20 08:27:01
date last changed
2014-08-20 08:27:01
@misc{4584739,
  abstract     = {China, the EU and the US are the top 3 destinations for exports from Africa. The implication for this relationship is that economic growth in these economic giants will have an effect on the aggregate demand of African economies through trade. Additionally, the emergence of China as an economic power has enabled it to increase its influence on the global stage on various fronts. African countries appear to be among the major beneficiaries of the industrialisation and growth of the Chinese economy as trade between China and Africa has increased significantly during the past years. This has enabled Africa to decrease its dependence on the EU and the US as its traditional markets for its exports a factor which could have enabled the impressive economic during the great recession while many other countries were paying a high price. To investigate how Africa’s key trade partners affect its growth, an autoregressive model is estimated using fixed effects annul panel data for the period 2000-2012 based on 35 Sub-Saharan Africa countries. The model is estimated by Generalized Methods of Moments. The estimated results reveal that the EU has the biggest impact on Africa’s economic growth in absolute terms followed by the US and China respectively. The data also fails to support the hypothesis that Africa impressive economic performance during the recent crisis is credited to improved trade ties with China over the years.},
  author       = {Alozious, Juuko},
  keyword      = {Great recession,EU,Economic Growth,China,Africa,US,Trade.},
  language     = {eng},
  note         = {Student Paper},
  title        = {The impact of China, the EU and the US on Africa’s economic growth through trade linkages.},
  year         = {2014},
}