An Assessment Of The Effects Of Chinese Debt Cancellation,Official Development Assistance(ODA) And Foreign Direct Investment(FDI) On The Economy Of Central African Countries

Economic growth is defined as an increase in goods and services produced per head of population over a period of time.The economic growth of any country is normally measured through the Gross Domestic Product.It has been noted that China is one of the most important economic partners and the largest source of foreign direct investment in the African continent.Its investment and official development assistance have helped spur infrastructure development and economic in Africa.China’s investment and ODA in Africa have been driven by its need for oil and other resources and a market to sell its products.However,the data has revealed that most of the developing countries have had a low economic growth and therefore,the research has been conducted to examine whether or not the Official Development Assistance,Foreign Direct Investments and Debt Cancellation can help enhance the economic growth of developing countries.The target of the study was developing countries and the sample frame was six Central African countries.The study used Census since all the items in the sample frame were used for the study.The fundamental concept used in the research is explanatory in nature,used secondary data and employed the use of both descriptive,multiple and random effects regression.The research employed the use of interpretive philosophy to establish the facts.The study established that Debt Forgiveness has a positive and insignificant relationship with GDP while Foreign Direct Investment and Official Development Assistance have positive and significant relationship with economic growth of Central African countries.Limitations included;studying the six countries in Central Africa region only,the study was limited to 18 years from 2003 to 2020,and it only analyzed three variables namely Debt Forgiveness,Official Development Assistance,and Foreign Direct Investment.It is recommended that a study to investigate the impact of debt cancellation,official development assistance and Foreign Direct Investment on the economic growth of other regions is recommended given that there is a deliberate effort toward regional integration in other developing areas.Further empirical work is encouraged to test other measures such as corruption,external debt and trade balance.