<p>The debates on the potential of China-Africa trade for inclusive growth are ongoing, but with limited empirical validation of the role of governance quality. This study therefore disaggregated governance into economic, political and institutional dimensions and assessed its mediating role on the link between China-Africa trade and inclusive growth. The FMOLS, DOLS and Driscol and Kraay and the threshold regression were employed for the analysis of 37 African countries with data obtained from the China-Africa Research Initiative and the World Development Indicators between 2000 and 2022. The study affirmed that China-Africa trade spurs inclusive growth though below a threshold level of 21.03%; governance quality also promotes inclusive growth below the threshold level but its heterogeneous effect across dimensions deters Africans’ from harnessing the potentials of their trade relations with China. Prioritizing trade agreement readjustments amidst sound regulatory framework is one of the study’s recommendations.</p>

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Role of Governance on China-Africa Trade Relations and Africa’s Inclusive Growth

  • Aminat Olayinka Olohunlana,
  • Temitope Wasiu Adamson,
  • Somod Dapo Olohunlana,
  • Jameelah Omolara Yaqub

摘要

The debates on the potential of China-Africa trade for inclusive growth are ongoing, but with limited empirical validation of the role of governance quality. This study therefore disaggregated governance into economic, political and institutional dimensions and assessed its mediating role on the link between China-Africa trade and inclusive growth. The FMOLS, DOLS and Driscol and Kraay and the threshold regression were employed for the analysis of 37 African countries with data obtained from the China-Africa Research Initiative and the World Development Indicators between 2000 and 2022. The study affirmed that China-Africa trade spurs inclusive growth though below a threshold level of 21.03%; governance quality also promotes inclusive growth below the threshold level but its heterogeneous effect across dimensions deters Africans’ from harnessing the potentials of their trade relations with China. Prioritizing trade agreement readjustments amidst sound regulatory framework is one of the study’s recommendations.