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Chinese Investments in Africa’s SME Sector: a case study of Zambia

Mutale, Chanda LU (2015) EKHM51 20151
Department of Economic History
Abstract
This paper investigates Chinese investments in Africa’s SME sector through a case study of Zambia. It analyses this growing trend by looking at the nature and effects of Chinese investments in the SME sector and their potential for fostering new knowledge that can lead to increased entrepreneurial activity and ultimate economic growth. It is a contribution to the empirical and theoretical understanding of this feature of Chinese investments in Africa in that it employs the Knowledge Spillover Theory of Entrepreneurship to understand how SME Chinese investments affect the local entrepreneurs. The study analyses this in the context of the existing policy framework in Zambia and the absorptive capacity of the Zambian entrepreneurs. The main... (More)
This paper investigates Chinese investments in Africa’s SME sector through a case study of Zambia. It analyses this growing trend by looking at the nature and effects of Chinese investments in the SME sector and their potential for fostering new knowledge that can lead to increased entrepreneurial activity and ultimate economic growth. It is a contribution to the empirical and theoretical understanding of this feature of Chinese investments in Africa in that it employs the Knowledge Spillover Theory of Entrepreneurship to understand how SME Chinese investments affect the local entrepreneurs. The study analyses this in the context of the existing policy framework in Zambia and the absorptive capacity of the Zambian entrepreneurs. The main finding of the study is that Chinese investments in the SME sector are potential sources of new knowledge but the spillover of this knowledge is very minimal because of certain inherent features of these investments, inadequate policy direction from the Zambian government and the limited absorptive capacity of the Zambian entrepreneurs. It highlights these challenges as issues that need to be corrected in order to maximize the benefits of Chinese investments in the SME sector. (Less)
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author
Mutale, Chanda LU
supervisor
organization
course
EKHM51 20151
year
type
H1 - Master's Degree (One Year)
subject
language
English
id
7868680
date added to LUP
2015-09-17 15:14:28
date last changed
2015-09-17 15:14:28
@misc{7868680,
  abstract     = {This paper investigates Chinese investments in Africa’s SME sector through a case study of Zambia. It analyses this growing trend by looking at the nature and effects of Chinese investments in the SME sector and their potential for fostering new knowledge that can lead to increased entrepreneurial activity and ultimate economic growth. It is a contribution to the empirical and theoretical understanding of this feature of Chinese investments in Africa in that it employs the Knowledge Spillover Theory of Entrepreneurship to understand how SME Chinese investments affect the local entrepreneurs. The study analyses this in the context of the existing policy framework in Zambia and the absorptive capacity of the Zambian entrepreneurs. The main finding of the study is that Chinese investments in the SME sector are potential sources of new knowledge but the spillover of this knowledge is very minimal because of certain inherent features of these investments, inadequate policy direction from the Zambian government and the limited absorptive capacity of the Zambian entrepreneurs. It highlights these challenges as issues that need to be corrected in order to maximize the benefits of Chinese investments in the SME sector.},
  author       = {Mutale, Chanda},
  language     = {eng},
  note         = {Student Paper},
  title        = {Chinese Investments in Africa’s SME Sector: a case study of Zambia},
  year         = {2015},
}