Who cares about corruption in Africa?: China or the USA?
Who cares about corruption in Africa?: China or the USA?
Considering the growing criticism by the USA of the bribery and corruption surrounding China's trade with Africa, this study uses panel data on 48 African countries over 17 years to examine whether the relationship between corruption and China's trade in Africa differs from that of USA–Africa trade relations. Contrary to expectations, we find that the relationship between corruption and trade with Africa is the same for both countries. Africa's trade with China and the USA increases as corruption increases. Our results imply that both countries have a similar trend of trading with African countries, and they might not care about corruption in Africa. Ultimately, both countries engage with Africa for their parochial economic and political interest. The results are robust to an alternative measure of corruption and endogeneity test using a two-stage least-square estimation technique.
Africa, China, corruption, export, import, trade, USA
Tawiah, Vincent
cad739a6-ffaa-4fee-9e10-307afc16c84b
Ayivor, Raymond
36b6b5ef-4ea8-4f7e-a24d-89a5687aa18a
Oyewo, Babajide Michael
36c93e4d-3041-4cef-8a0d-9f72f417e249
Tawiah, Vincent
cad739a6-ffaa-4fee-9e10-307afc16c84b
Ayivor, Raymond
36b6b5ef-4ea8-4f7e-a24d-89a5687aa18a
Oyewo, Babajide Michael
36c93e4d-3041-4cef-8a0d-9f72f417e249
Tawiah, Vincent, Ayivor, Raymond and Oyewo, Babajide Michael
(2023)
Who cares about corruption in Africa?: China or the USA?
International Journal of Finance and Economics.
(doi:10.1002/ijfe.2785).
Abstract
Considering the growing criticism by the USA of the bribery and corruption surrounding China's trade with Africa, this study uses panel data on 48 African countries over 17 years to examine whether the relationship between corruption and China's trade in Africa differs from that of USA–Africa trade relations. Contrary to expectations, we find that the relationship between corruption and trade with Africa is the same for both countries. Africa's trade with China and the USA increases as corruption increases. Our results imply that both countries have a similar trend of trading with African countries, and they might not care about corruption in Africa. Ultimately, both countries engage with Africa for their parochial economic and political interest. The results are robust to an alternative measure of corruption and endogeneity test using a two-stage least-square estimation technique.
Text
Int J Fin Econ - 2023 - Tawiah - Who cares about corruption in Africa China or the USA
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Accepted/In Press date: 8 January 2023
e-pub ahead of print date: 19 February 2023
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Publisher Copyright:
© 2023 The Authors. International Journal of Finance & Economics published by John Wiley & Sons Ltd.
Keywords:
Africa, China, corruption, export, import, trade, USA
Identifiers
Local EPrints ID: 476021
URI: http://eprints.soton.ac.uk/id/eprint/476021
ISSN: 1076-9307
PURE UUID: 082f0739-ed24-4380-91cd-ecf81eb1813b
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Date deposited: 04 Apr 2023 16:46
Last modified: 17 Mar 2024 04:08
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Contributors
Author:
Vincent Tawiah
Author:
Raymond Ayivor
Author:
Babajide Michael Oyewo
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