The Impact of China-Africa Trade on the Productivity of African Firms: Evidence from Ghana

Jun Hou, Xiaolan Fu, Pierre Mohnen*

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

2 Citations (Web of Science)

Abstract

Using firm- and industry-level panel data, this study investigates the impact of the Ghana-China trade on labour productivity of Ghanaian manufacturing firms and compares it to the impact induced by the trade of Ghana with the OECD. The main findings suggest that the productivity effect in Ghanaian manufacturing firms triggered by engaging in international trade activities is contingent upon the industrial competitive advantage and the trading partners. The empirical results show that trading with China creates greater potentials for Ghanaian manufacturing firms to raise productivity in comparison to trading with OECD countries. Higher intensities of imports from China stimulate productivity gains while more exports to China only enhance productivity in industries in which Ghana has a comparative advantage.

Original languageEnglish
Pages (from-to)869-896
Number of pages28
JournalEuropean Journal of Development Research
Volume34
Issue number2
Early online date9 Apr 2021
DOIs
Publication statusPublished - Apr 2022

Keywords

  • Trade
  • Productivity
  • South&#8211
  • South trade
  • Ghana
  • Manufacturing

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