The Impact of China-Africa Trade on the Productivity of African Firms: Evidence from Ghana

Hou, Jun, Fu, Xiaolan and Mohnen, Pierre (2022) The Impact of China-Africa Trade on the Productivity of African Firms: Evidence from Ghana. The European Journal of Development Research, 34 . pp. 869-896. ISSN 0957-8811

Full content URL: https://doi.org/10.1057/s41287-021-00381-5

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Abstract

Using firm- and industry-level panel data, this study investigates the impact of the Ghana-China trade on labour productivity of Ghanaian manufacturing firms and compares it to the impact induced by the trade of Ghana with the OECD. The main findings suggest that the productivity effect in Ghanaian manufacturing firms triggered by engaging in international trade activities is contingent upon the industrial competitive advantage and the trading partners. The empirical results show that trading with China creates greater potentials for Ghanaian manufacturing firms to raise productivity in comparison to trading with OECD countries. Higher intensities of imports from China stimulate productivity gains while more exports to China only enhance productivity in industries in which Ghana has a comparative advantage.

Keywords:Trade, Productivity, South-South trade, Ghana, Manufacturing
Subjects:L Social studies > L100 Economics
L Social studies > L113 Economic Policy
Divisions:Lincoln International Business School
ID Code:48657
Deposited On:28 Mar 2022 14:05

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