Corruption, Chinese investment, and trade: Evidence from Africa

Tawiah, V; Kebede, J; Kyiu, A

doi:10.1177/09726527221073981

Corruption, Chinese investment, and trade: Evidence from Africa

Tawiah, V; Kebede, J; Kyiu, A

Authors

V Tawiah

J Kebede

Dr Anthony Kyiu anthony.k.kyiu@durham.ac.uk
Assistant Professor

Abstract

We investigate whether corruption in host countries drives the different routes of Chinese economic engagement with Africa. Using data from 49 African countries for 2000–2018, we find that corruption affects each route of China’s engagement with Africa differently. Corruption in Africa is significantly negatively associated with FDI from China, but significantly positive with both trade and construction. These relationships are moderated by the availability of natural resources but do not change after the implementation of the Xi Jinping anti-corruption campaign. By disaggregating China–Africa financial engagement into its different routes, we demonstrate that the relationship between corruption and China’s presence in Africa varies with the nature of the engagement.

Citation

Tawiah, V., Kebede, J., & Kyiu, A. (2022). Corruption, Chinese investment, and trade: Evidence from Africa. Journal of Emerging Market Finance, 21(2), 123-151. https://doi.org/10.1177/09726527221073981

Journal Article Type	Article
Acceptance Date	Dec 30, 2021
Online Publication Date	Feb 8, 2022
Publication Date	Jun 1, 2022
Deposit Date	Mar 1, 2022
Publicly Available Date	May 5, 2022
Journal	Journal of Emerging Market Finance
Print ISSN	0972-6527
Electronic ISSN	0973-0710
Publisher	SAGE Publications
Peer Reviewed	Peer Reviewed
Volume	21
Issue	2
Pages	123-151
DOI	https://doi.org/10.1177/09726527221073981
Public URL	https://durham-repository.worktribe.com/output/1212448

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This article is distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access page (https://us.sagepub.com/en-us/nam/open-access-at-sage).