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What Happens When Your Hand is in My Pocket

The Foreign Policy Effects of China’s Foreign Direct Investment in Africa

Bibliographic Data

ID21465755
AuthorsHermann Achidi Ndofor (0000-0002-4933-3442, University of Pretoria, corresponding author), Carla D Jones (Sam Houston State University), Mengge Li (0000-0003-2056-4973, The University of Texas at El Paso)
Year2025
Volume199
Issue2
Pages393-412
Publication date2025-06-01
Open AccessYes
TypeARTICLE
VenueJournal of Business Ethics (JOURNAL)
Journal identifiersISSN: 0167-4544 • E-ISSN: 1573-0697
PublisherSpringer Science and Business Media LLC (PUBLISHER)
DOI10.1007/s10551-024-05794-w
OpenAlexW4401865229
LanguageEN
Citations received2
References cited49

This study utilizes social exchange theory to argue that a more complete picture of the effects of China’s FDI in Africa needs to include non-economic factors, especially institutional forces that incorporate macro political considerations. We propose that economic dependencies created by China’s FDI in Africa are reciprocated by votes in international organizations, and thus, we hypothesize and test that increasing China’s FDI in African nations leads to increased political alignment in international affairs with those African nations. The proposed relationship, however, will be weakened for African countries with stronger governance mechanisms. Using data for China’s FDI in African countries from 2001–2019, we find support for our hypotheses. We find that China’s economic engagement in Africa has resulted in increased political alignment on international issues evidenced by votes in United Nations organizations raising the possibility Africa’s most attractive resource may not be economic, but rather political. This, however, poses the question of whether votes are a ‘resource’ that can be traded for economic purposes

Business · Business ethics · China · Economics · Foreign direct investment · Foreign policy · International economics · International trade · Management · Political science · Politics · Public health · Quality of Life Research · Economic Growth and Development · International Business and FDI · International Development and Aid · Law · Medicine

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Citation span2024 - 2025 (2)
Highly citedNo

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