The Effect Of China’s Investment On The Business Environment And Economic Growth Of Sub-Saharan Africa In The Perspective Of Belt And Road Initiative

The China’s foreign direct investment and trade renewed the post Sino-Africa post 2000 by raising the African countries bilateral agreements,statistics of trade exchange,increasing Chinese developmental aid and companies with Chinese experts operating and sharing experience in Africa.The Sino-Africa relations is believed to have a significant bound in the economic,political and social empires,where China has an access to gain mineral resources and political influence while Africa gets developmental thought,assistance and representation in international forums from China.Though the actual role of Chinese foreign direct investment and trade contributions in the economic growth of Sub-Saharan Africa and the link with the international Business is not yet investigated.Hence,this study was conducted to investigate the effect of Chinese investment and trade on the business environment and Economic growth of Sub-Saharan Africa countries in the perspective of Belt and Road Initiative.The structure of this paper is:The first chapter is the introduction,the research background,main problems,objectives,assumptions,scope and structure;The second chapter is the literature review,which from the perspective of China-Africa relations,theoretical framework,FDI theory,economic growth theory,new classical economic growth theory,endogenous growth theory,economic growth factors,Sub-Saharan Africa’s economic growth and investment,multinational companies in Sub-Saharan Africa,China’s investment and loans for Sub-Saharan African business environment and the influence of the economic growth,SubSaharan Africa and China’s "Neighborhood" Cooperation etc.;The third chapter is the research design and modeling method;The fourth chapter is empirical analysis and discussion;Chapter five is the conclusion and suggestion.The study used a neoclassical growth of Solow-type growth model and panel data analysis from the period of 2003 to 2018 on 43 SSA countries for the investment and trade and for Belt and Road Initiative countries used before and after starts from 2007-2011 and 2012-2018 respectively in 36 Sub-Saharan Africa countries.Two panel regressions were estimated using time and country fixed effects.The fixed effect study result showed that the Chinese investment and trade in the perspective of Belt and Road Initiative has positive and statically significant effect on the economic growth and business environment of Sub-Saharan African countries.Besides,the Chinese investment and trade in the studied Sub-Saharan African countries is not a threat and normalized the negative attitude of some western researchers about SinoAfrica.Hence,it is better for China to revise the policy of investment flow in all countries in the region after evaluating the environment for investment,business,policy and need of the countries.Moreover,Chinese foreign direct investment should have assurance of new knowledge,capital and infrastructure in the Sub-Saharan African countries to develop their business policy.On the other side,internal strength and growth of the Sub-Saharan African countries should have to attract new investment in the region to bring a shift for new knowledge,capital and new infrastructure in line with the continuous development cycle.To this end,in order to more emphasize for all countries both China and Sub-Saharan African countries should do and revise their policy towards Belt and Road Initiative.The main innovations of this paper are as follows:(1)combining classical and neoclassical theories and endogenous growth theory with foreign investment theory,and extending theoretical analysis to the field of business environment;(2)From the perspective of the belt and Road Initiative,the paper studies the impact of Chinese investment on the business environment and economic growth in sub-Saharan Africa,and makes innovations from the perspective of research and the selection of research objects;(3)using fixed effect and the random effects model,respectively,build the model test of Chinese foreign direct investment stock impact on economic growth,the influence of Chinese trade on economic growth and the impact of debt on economic growth in China,especially introducing debt variables in model analysis,a more scientific analysis of the Chinese investment in Sub-Saharan Africa business environment and the impact of economic growth;(4)From the perspective of the Belt and Road Initiative and China-Africa friendship and cooperation,the research conclusions of this paper are sublimated and feasible policy solutions are put forward.