On the Impact of China's OFDI on African Debt under the Belt and Road Initiative
Following the proposal of the Belt and Road Initiative(BRI),China's direct investment in African countries has grown rapidly,contributing to their socio-economic development.However,debt issues in these countries have hindered their high-quality regional development.Using panel data from 2013 to 2022,this study analyzes the impact of China's outward foreign direct investment(OFDI)in Africa on the debt burden of 42 African countries that have signed cooperation agreements under BRI with China.The findings reveal that China's OFDI in Africa significantly reduces the debt burden of African countries,but the effect varies across sample countries with different levels of development,debt risk,and the status of bilateral investment agreements.The employment level in African countries is a crucial factor influencing the debt-reducing effects of China's OFDI.Based on these findings,the paper proposes policy recommendations for China to continue increasing its direct investment in African countries,further promote the BRI,and help African countries build their self-debt repayment capabilities.
NETL
NSTL
万方数据
