JOURNAL ARTICLE

Is FDI from China Goodfor Labour Productivity in Sub-Saharan Africa? A Panel Cointegration.

  • Published In: Foreign Trade Review, 2026, v. 61, n. 1. P. 31 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Iheonu, Chimere O.; Abia, Basil; Okwoche, Princewill; Ifelunini, Innocent A. 3 of 3

Abstract

This article examines the impact of Chinese foreign direct investment (CFDI) on labour productivity in 22 sub-Saharan African (SSA) countries from 2003 to 2020, using panel cointegration techniques including dynamic ordinary least squares (OLS) and fully modified OLS. The study finds that CFDI significantly enhances labour productivity in the long run but has no immediate short-run effect. Additionally, capital per labour is identified as a crucial factor for improving labour productivity, while domestic credit and access to electricity show mixed results. The research recommends that SSA governments strengthen investment promotion agencies and negotiate trade and investment agreements with China to facilitate technology transfer and skills development.

Additional Information

  • Source:Foreign Trade Review. 2026/02, Vol. 61, Issue 1, p31
  • Document Type:Article
  • Subject Area:Environmental Sciences
  • Publication Date:2026
  • ISSN:0015-7325
  • DOI:10.1177/00157325231214047
  • Accession Number:190929030
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