By Organization for Economic Cooperation & Development
ISBN-10: 9264024417
ISBN-13: 9789264024410
ISBN-10: 9264024425
ISBN-13: 9789264024427
This e-book demonstrates how the transforming into financial energy of China and India is already influencing the expansion styles of African nations, relatively oil- and commodities-exporting ones. As international costs for commodities upward push, manufacturer international locations in Africa and through the global will achieve, yet there's extra to the tale than that. a few African nations are redirecting a part of their alternate and different relationships from their conventional OECD companions to China and India. The booklet explores the results of this, and springs to a couple incredible conclusions.
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Additional info for The Rise of China And India: What's in It for Africa? (Development Centre Studies)
Example text
It cannot be concluded from a RCA analysis based on aggregate data that products where African countries and China/India have a common RCA are identical and that their producers are competing in the same markets. For instance, the exports of the Democratic Republic of Congo and India are prima facie similar. The top 10 products, that is, those with the largest shares in total exports of the Democratic Republic of Congo and India are the same and the difference in share of total exports is small, indicating possible competition.
In other words, Chinese and Indian ISBN 92-64-02441-7 © OECD 2006 63 The Rise of China and India : What's in it for Africa? companies may have emerged as significant competitors for local African markets. In this respect, three issues have to be considered: • Do Chinese and Indian products which are mostly cheap, displace local African production or do they compete with imports from other foreign producers? • If it turns out that imports from India and China undercut local production, do the latter consist of labour intensive goods, and if so what is the impact of imports from China and India on local employment, household revenues and, finally, on poverty?
Africa’s income terms of trade may well have benefited from Asia’s emergence, through various channels: • a net rise in the demand for raw commodities translating into higher export unit prices and volumes; and • urban consumers gaining from cheaper consumer goods and investors benefiting from cheaper capital goods. Exporters and urban consumers may indeed enjoy higher purchasing power as import prices are lower compared to prices of previous import sources or domestic producers. Note however that this is only true if lower production prices are reflected in lower selling prices, which in turn depends on the degree of competition in the market.
The Rise of China And India: What's in It for Africa? (Development Centre Studies) by Organization for Economic Cooperation & Development
by Mark
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