The Impact of China – African trade on economic growth of African countries

Abstract: There is no doubt that trade play a major role in economic growth and development of the country. But this notion has met with critical debate and controversies on the influence of trade on improving economic growth between countries, with some studied arguing that trade can actually harm the economy of at least one of the two countries. The trade between china and Africa is no exception to this. Therefore to clear this debate, this study empirically analyzed the impact of trade between china and Africa on the economic growth of African countries. The panel data involving 41 African countries spanning 24 years (1992-2016) were collected and analyzed through pooled OLS, fixed effect and Arellano-Bond/Blundell-Bond models. The results showed that in all estimation techniques African trade with china appeared to benefit the former on improving its economic growth through import related gains by lowering import prices and widening varieties of commodities which boost economic diversification and exposure to new markets and thus, as the China –African trade predicted to grow in the coming years, this study argue for more trade but also improving physical capital, domestic investment and infrastructur