Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/269412 
Year of Publication: 
2016
Series/Report no.: 
FERDI Working Paper No. P131
Publisher: 
Fondation pour les études et recherches sur le développement international (FERDI), Clermont-Ferrand
Abstract: 
In this paper, the competition impact (the volumes of imports of manufactured goods by African countries and their relative prices captured by real exchange rates) that China exerts on Africa's manufacturing added value is empirically analyzed. Using panel data on 44 African countries covering the period 2000 to 2013, we find that the imports of manufactured goods from China by African countries exert a negative effect on their manufacturing and that a moderate real appreciation of their currencies relative to the renminbi has a positive effect, although it also increases their imports from China and raises the cost of labor. The positive effect of the real appreciation is probably due to the reduced cost of imports. However, as traditional theory predicts, a big real appreciation exerts a negative effect on Africa's manufacturing.Revised version : December 2016Keywords: manufacturing, China, Africa, real exchange rates
Subjects: 
manufacturing
China
Africa
real exchange rates
JEL: 
E60
F60
L60
O55
Document Type: 
Working Paper

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