China And Indias Commodity Demand Boom The Chinese Fdi And The Primary Sector Locking Effects For Africa.

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The implications of the recent ADs' growth surge for the industrial development of Africanrncountries have been the subject of recent allention. The literature, however, focl/sed on thernimpact of ADs ' growing competitiveness in labor intensive manufactured goods on the industrialrndevelopment strategy of the continent. This study, motivated by this bias in literature, exploresrnwhether the recent ADs' commodity demand boom significantly stimulated African countries tornre-deepen their specialization in the production and export of traditional commodities. The studyrnemployed a non-parametric test of 'Galtonian regression method' to test the re-deepeningrnspecialization paltems of African countries. Then, the multi-country version of the HOV model isrnused to uncover the specialization patterns with the ADs' commodity imports and the ChinesernFDI flows are used to augment the model. The non-parametric test shows that African countriesrnare characterized by re-deepening specialization patterns with the exception of few countriesrnand few sectors. While China's commodity imports are significantly locking African countries inrnthe production and export of traditional commodities, China's FDI and India's commodityrnimports are not important in such patterns. Furthermore, the result indicates that the intensity ofrnthe impacts of China's commodity demand boom on the export structure of Africa varies acrossrncommodity groups and the indirect impacts are more significant than the impacts of directrnbilateral commodity imports from African countries. This calls for innovative policy responses tornChina and the need to balance between the temporGlY resource windfall gain. and the futurernindustrialization strategies of the continent.

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China And Indias Commodity Demand Boom The Chinese Fdi And The Primary Sector Locking Effects For Africa.

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