Factor Endowments in a South- South Relation
Trade Preferences, Migration and Inequality for China in Africa
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China s new partnership with Africa has created oneof the most interesting South- South relationships.Through its growing demand for natural resources,China has turned into one of the largest investors inAfrica; some patterns indicate a vested North- Southrelation with China in the role of the USA. Thedifferent endowments of the regions lead to differentoutcomes, most notably in migration and inequality. The labour abundance of China in combination with itscapital abundance in relation to Africa creates apattern of migration of unskilled labour which isrelatively unprecedented in this form. Th...
China s new partnership with Africa has created one
of the most interesting South- South relationships.
Through its growing demand for natural resources,
China has turned into one of the largest investors in
Africa; some patterns indicate a vested North- South
relation with China in the role of the USA. The
different endowments of the regions lead to different
outcomes, most notably in migration and inequality.
The labour abundance of China in combination with its
capital abundance in relation to Africa creates a
pattern of migration of unskilled labour which is
relatively unprecedented in this form. This on the
other hand has also effects on unskilled labour in
Africa. As for inequality, trade based on different
endowments benefits different parts of the society.
Only because of being labour abundant, China could
achieve a significant reduction of poverty through
openness to investment and trade. Africa is in a
different position. The continent s land abundance
benefits mainly the land owning elite with further
implications for trade preferences or migration.
of the most interesting South- South relationships.
Through its growing demand for natural resources,
China has turned into one of the largest investors in
Africa; some patterns indicate a vested North- South
relation with China in the role of the USA. The
different endowments of the regions lead to different
outcomes, most notably in migration and inequality.
The labour abundance of China in combination with its
capital abundance in relation to Africa creates a
pattern of migration of unskilled labour which is
relatively unprecedented in this form. This on the
other hand has also effects on unskilled labour in
Africa. As for inequality, trade based on different
endowments benefits different parts of the society.
Only because of being labour abundant, China could
achieve a significant reduction of poverty through
openness to investment and trade. Africa is in a
different position. The continent s land abundance
benefits mainly the land owning elite with further
implications for trade preferences or migration.
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