Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/270229 
Year of Publication: 
2021
Citation: 
[Journal:] Cogent Business & Management [ISSN:] 2331-1975 [Volume:] 8 [Issue:] 1 [Article No.:] 1886472 [Year:] 2021 [Pages:] 1-28
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
This study examines the role of domestic governance quality on the relationship between Chinese foreign direct investment (FDI), domestic investment, and African countries' economic growth. The study utilized a larger dataset of Chinese FDI to 44 African countries applying the two-step system GMM estimation method for 2003-2017. This study's findings reveal that Chinese FDI's impact on economic growth is conditional to improving African countries' aggregate and each component of individual governance indicators used to represent the countries' institutional quality. The impact of Chinese FDI on African countries' domestic investment is robustly positive. Besides, improvement in the governance environment stimulates the effect of Chinese FDI on domestic investment. More specifically, control of corruption, government effectiveness, and voice and accountability have mediating roles in the nexus of Chinese FDI and African countries' domestic investment. Thus, African countries aiming to attract Chinese FDI and promote their economic growth and domestic investment need to improve governance quality.
Subjects: 
FDI
domestic investment
economic growth
the two-step system GMM estimator
China-Africa
JEL: 
F35
F41
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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