Business Geography Keynote - The impact of Chinese FDI in Africa: Evidence from Ethiopia

Authors: Riccardo Crescenzi*, London School of Economics
Topics: Business Geography
Keywords: Foreign direct investment (FDI), Domestic investment, Growth, China, Africa, Ethiopia
Session Type: Virtual Paper
Day: 4/9/2021
Start / End Time: 1:30 PM / 2:45 PM
Room: Virtual 5
Presentation File: No File Uploaded

The Impact of Chinese FDI in Africa – our keynote speaker Dr. Riccardo Crescenzi exploits exogenous variation in China’s export taxes to investigate the impact of Chinese foreign direct investment (FDI) in Ethiopia. He will discuss how higher sector-specific export taxes in China lead to more Chinese FDI in Ethiopian districts specialized in those sectors and generate highly heterogeneous effects, and how domestic firms competing with Chinese FDI reduce their sales, investment, inputs, and prices, while firms in upstream and downstream sectors expand. The focus of the keynote will build a 20-year district panel of night lights and observe that Chinese FDI leads to no instantaneous impact on local growth, but significant and persistently positive effects after 6-12 years.

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