The Impacts Of Chinese Foreign Direct Investment On The Economic Growth Of African Countries

The purpose of this study is to investigate how Chinese foreign direct investment(FDI)and China-Africa trade affect the economic growth of African countries,with Cameroon serving as a case study.Specifically,the study focuses on the impact of Chinese investments in road irfrastructure and hydro-electrical projects on Gross Domestic Product(GDP)growth.The study employs a two-step system Generalized Method of Moments(GMM)model to analyze reliable data spanning from 2003 to 2021,using secondary data from the National Bureau of Statistics and the World Bank’s WDI.Both descriptive and inferential statistics,including linear regression analysis,unit root test,co-integration test,and Granger causality tests,are utilized to analyze the data.The study examines the conditional effect of ChinaAfrica trade and Chinese FDI on the economic growth of African countries,as well as the interdependence of these factors.The findings suggest that Chinese investment in road infrastructure and hydroelectric projects has a significant positive impact on GDP growth.Based on the results,the study recommends that African governments diversify investment sources,negotiate favorable terms,improve regulatory frameworks,build local capacity,and address some public concerns to mitigate potential negative impacts.Such measures can ensure that Chinese investments in African countries promote sustainable development and benefit their economies.