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Title
ChinAfrica: How can the Sino-African cooperation be beneficial for Africa ? |
Full text
http://sites.uclouvain.be/econ/DP/IRES/2007-14.pdf |
Author(s)
Luca, MARCHIORI |
Abstract
In this paper, different scenarios of increased cooperation between China and African countries are simulated. Recent intensification of political and economic ties between China and Sub-Saharan Afreican countries may give hope that an economic improvement in Sub-Saharan Africa (SSA) is possible. Three channels may lead to a catching-up for Africa with China: a reduction in Africa's investment risk, an increase in its total factor productivity (TFP) and an improvement of its worker skills. A computable general equilibrium model of the world economy is used, that shares the world in 10 regions, among which Sub-Saharan Africa and China. Three scenarios are considered in which, by 2100, Africa will have reduced simultaneously its gaps in investment risk, TFP and eduction to China by either 20% (scenario 1), 40% (scenario2) or 60% (scenario3). The effects on the Sub-Saharan African economy are very promising. The results show that, already in 2050, Africa will have increased its per capita Gross Domestic Product (GDP) by 50% with scenario1, 80% with scenario 2 and by 125% with scenario 3. - OLG-CGE Model, Catching-up, sSmulations, Africa, China |
Type of publication
preprint |
Identifier
RePEc:ctl:louvec:2007014 |
Repository
RePEc - Research Papers in Economics
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Added to C-A: 2010-09-03;09:14:48 |
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