Construction of China’s overseas cooperation zones and economic development of the host countries: the African practice

LIU Chen1 GE Shunqi2

(1.School of International Relations & Public Affairs, Fudan University )
(2.Institute of International Economics of Nankai University )

【Abstract】In recent years, China’s overseas cooperation zones in Africa have developed rapidly, which have not only become important platforms for Chinese enterprises to go abroad, but also play a positive role in the economic growth of the host countries. Theoretically, the impact of the cooperation zones on the host-country economy includes: first, in the short term, they can promote the investment, employment and government income of the host countries; second, in the medium term, they can enhance the linkage effect between the Chinese and the host-country enterprises and promote industrial agglomeration; third, in the long term, they will be conducive to the administrative policy experiment of the host countries and promote the construction and long-term development of the market system. In reality, the total output value of China’s overseas cooperation zones in Africa has reached 18.89 billion US dollars, created more than 40000 jobs, formed industrial chains of leather, textile and other industries, and promoted the exploration of some countries to use the cooperation zones to promote industrialization. At the same time, there are still problems in these cooperation zones, including insufficient infrastructure and preferential policies, weak industrial linkage effect, and lack of obvious driving effect on industrialization. The reasons for these problems lie in the financing difficulties of the developer enterprises, the insufficient industrial policies of host-country governments, and the lack of long-term development capacity of African countries. Drawing on China’ experience, the developer enterprises can explore market-oriented financing models, combine preferential policies with infrastructure construction, while the local governments of host countries can improve reasonable industrial policies, enhance the interaction between Chinese enterprises and local enterprises. Meanwhile, the host countries can actively support the development of industry and commerce and enhance their long-term development capacity, which will be the key tasks to promote the economic transformation of the host countries.

【Keywords】 overseas cooperation zone ; Africa; economic growth ; industrial agglomeration ; market system ;

【DOI】

【Funds】 Major Project of 13th Five-Year Plan Social Science Base of the Ministry of Education

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(Translated by SU Fang)

    Footnote

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This Article

ISSN:1007-0974

CN: 11-3799/F

Vol , No. 03, Pages 73-100+6

May 2019

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Abstract

  • 1 Construction background of China’s cooperation zones in Africa
  • 2 Development status of China’s cooperation zones in Africa
  • 3 Economic Impacts and problems of Chinese overseas cooperation zones in Africa
  • 4 Case comparison and implications
  • 5 Policy implications
  • Footnote