The main question is the following: Is China-Africa
economic relation instrumental for capital flight and poverty reduction in FZ?
Does it matter in improvement of external debt impact on GDP per capita and
capital flight reduction in particular?
The paper are trying to extends and assesses the Asongu
and Aminkeng (2013) conclusions about Sino-African economic relation in the FZ
context.
Thus, practically, the intuition is to uses a TSLS-IV econometric estimation
technique on 14 African countries specific data over the period 1983-2013 to empirically
assess if African external debt exclusively from China can be instrumental in
the way toward capital flight and poverty reduction in FZ. The construction of
a theoretical framework highlighting stylized fact and the review of a recent
literature on this issue has been firstly undertaken.
The first main result allowed
the following interpretations: (a) an important part of the traditional
external debt contracted with constraint is going back out of the continent as
capital flight and; (b) The capital flight contributes to improve the level of
poverty in Africa.
Overall, we can conclude that the contribution to economic
development depends on the quality of loans received. We can therefore for further analyses, check which type of external debt is more suitatble for African countries specificities for development.
The originality of the work is ecident since it is trying to test the Asongu and Aminkeng (2013) assumption in
the continent where concerns of low economic development, higher poverty and capital
flight are most acute.
