Saturday, September 9, 2017

Impact of High Level Visits on China-Africa Trade

The July 2017 issue of the Scottish Journal of Political Economy has an article titled "The Impact of Africa-China's Diplomatic Visits on Bilateral Trade" by Faqin Lin, Wenshou Yan, and Xiaosong Wang.

The authors argue that high level exchange visits between China and Africa stimulate China's exports to Africa in capital intensive manufacturing goods. They also found that state visits significantly increase official Chinese aid and exports by state-owned enterprises to African countries, which contributes to subsequent trade growth.