Table Of ContentFOREIGN CAPITAL FLOWS
AND ECONOMIC
DEVELOPMENT IN AFRICA
THE IMPACT OF BRICS VERSUS OECD
EDITED BY EVELYN WAMBOYE
& ESUBALEW ALEHEGN TIRUNEH
Foreign Capital Flows and Economic
Development in Africa
EvelynWamboye(cid:129)EsubalewAlehegnTiruneh
Editors
Foreign Capital Flows
and Economic
Development in Africa
The Impact of BRICS versus OECD
Editors
EvelynWamboye EsubalewAlehegnTiruneh
PennsylvaniaStateUniversity Birmingham-SouthernCollege
DuBois,PA,USA Birmingham,Alabama,
USA
ISBN978-1-137-53495-8 ISBN978-1-137-53496-5 (eBook)
DOI10.1057/978-1-137-53496-5
LibraryofCongressControlNumber:2017934236
©TheEditor(s)(ifapplicable)andTheAuthor(s)2017
Thisworkissubjecttocopyright.AllrightsaresolelyandexclusivelylicensedbythePublisher,
whetherthewholeorpartofthematerialisconcerned,specificallytherightsoftranslation,
reprinting,reuseofillustrations,recitation,broadcasting,reproductiononmicrofilmsorinany
otherphysicalway,andtransmissionorinformationstorageandretrieval,electronicadaptation,
computersoftware,orbysimilarordissimilarmethodologynowknownorhereafterdeveloped.
Theuseofgeneraldescriptivenames,registerednames,trademarks,servicemarks,etc.inthis
publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesare
exemptfromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse.
Thepublisher,theauthorsandtheeditorsaresafetoassumethattheadviceandinformationin
thisbookarebelievedtobetrueandaccurateatthedateofpublication.Neitherthepublisher
northeauthorsortheeditorsgiveawarranty,expressorimplied,withrespecttothematerial
contained herein or for any errors or omissions that may have been made. The publisher
remains neutral with regard to jurisdictional claims in published maps and institutional
affiliations.
Coverillustration:MartinHarvey/AlamyStockPhoto
Printedonacid-freepaper
ThisPalgraveMacmillanimprintispublishedbySpringerNature
TheregisteredcompanyisNatureAmericaInc.
Theregisteredcompanyaddressis:1NewYorkPlaza,NewYork,NY10004,U.S.A.
TothePeopleofAfricaandfriendsofAfricawhostrivetomake
thecontinentprosperous
C
ONTENTS
PartI Introduction 1
1 ExploringtheNature,Motives,andImplicationsofForeign
CapitalinAfrica 3
EvelynWamboyeandEsubalewAlehegnTiruneh
PartII ChineseGrowingEngagementinAfrica:Motives
andImplications 27
2 TheImpactofChinaandSouthAfricainUrbanAfrica 29
PádraigCarmodyandJamesT.Murphy
3 China’sFinancialandAidFlowsintoAfricaandtheirEffects 51
MeinePietervanDijk
4 EnhancingtheImpactofChineseDevelopmentFinance
forSustainedPovertyAlleviationinAfrica 69
PatrickN.Osakwe
vii
viii CONTENTS
PartIII UnderstandingBRICS’versusOECDCountries’
InvestmentinAfrica 95
5 ForeignDirectInvestmentandStructuralChangeinAfrica:
DoesOriginofInvestorsMatter? 97
VitoAmendolagine,NicolaD.Coniglio,andAdnanSeric
6 BRICSversusG7Countries’DirectInvestmentImpact
inAfrica 127
KenechukwuEzemenari,EsubalewAlehegnTiruneh,and
EvelynWamboye
7 BRICversusOECDForeignDirectInvestmentImpact
onDevelopmentinAfrica 147
SamuelAdamsandEricEvansOseiOpoku
8 Cross-BorderCapitalFlowsandEconomicPerformance
inAfrica:ASectoralAnalysis 163
OdongoKodongoandKaluOjah
PartIV ThePoliticsofLand,LandGrab,andthe
DevelopmentPuzzle 191
9 TheConceptofLandinEthiopianTradition:Land,
Power,andFamine 193
MesfinWolde-Mariam
10 YourNext“Landlord”WillNotBeEthiopian:How
GlobalizationUnderminesthePoor 205
AklogBirara
CONTENTS ix
11 TheTruthAboutLandGrabs:AReviewoftheOakland
Institute’sReportsonLarge-ScaleLandInvestmentsin
theTwenty-FirstCentury 221
ElizabethFraserandAnuradhaMittal
PartV InternationalR&DSpillovers,TradeLinkages,
andEconomicDevelopmentinAfrica 247
12 InternationalR&DSpilloversandLaborProductivity
inAfrica 249
EsubalewAlehegnTiruneh,EvelynWamboye,and
DavidO’Brien
13 DevelopmentAidandInternationalTradeinSub-Saharan
Africa:EUversusChina 271
EduardMarinovandNedyalkoNestorov
14 ChangingInternationalTradeLinkagesinSub-Saharan
Africa:BRICversusOECDCountries 299
NihalBayraktar
PartVI RevisitingAidEffectonSocialSector,Growth,
andStructuralChangeinAfrica 323
15 GrowthImpactofAidQuantityandQualityinAfrica 325
EvelynWamboyeandKirilTochkov
16 TheRoleofForeignAidintheFast-GrowingRwandan
Economy:AssessingGrowthAlternatives 351
XinshenDiao
17 AnatomyofForeignAidinEthiopia 375
AdugnaLemi
x CONTENTS
PartVII Remittances,Debt,ResourceManagement,and
EconomicDevelopmentinAfrica 399
18 RemittancesandEconomicDevelopmentinAfrica:
AReviewofEmpiricalEvidence 401
KasahunWoldemariamandZelealemYiheyis
19 HaveDebtReliefInitiativesYieldedVaryingEffects
inResourceandNon-resourceEndowedCountries
inAfrica? 423
EsubalewAlehegnTirunehandEvelynWamboye
20 DebtSustainabilityandDirectionofTrade:What
DoesAfrica’sShiftingEngagementwithBRIC
andOECDTellsUs? 449
KelbesaMegersaandDannyCassimon
21 ManagingResourcePriceVolatility:ExploringPolicy
OptionsfortheDemocraticRepublicofCongo 477
EmmanuelPintoMoreira
Index 505
B C
IOS OF ONTRIBUTORS
SamuelAdamsisDeanoftheSchoolofGovernanceatGhanaInstituteof
Management and Public Administration in Ghana. Professor Adams has
published articles in many refereed journals including Journal of Policy
Modeling, Economic Analysis and Policy, and Social Science Quarterly.
He obtained his Ph.D. in Public Administration and Urban Policy from
OldDominionUniversity.
VitoAmendolagineisResearchFellowattheUniversityofPaviainItaly.
Previously, he worked with the United Nations Industrial Development
Organization. He holds two Ph.Ds. in Economics from the University of
GlasgowandUniversityofBari.
NihalBayraktarisAssociateProfessorofEconomicsatPennsylvaniaState
University,Harrisburg.PriortoPennState,sheworkedfortheWorldBank
as an economist. Nihal has researched on issues related to investment,
economic development, and trade. She has a Ph.D. in Economics from
UniversityofMaryland,CollegePark.
Aklog Birara is Chair of the Ethiopian Dialogue Forum in USA. He
worked for the World Bank, USAID, and the National Bank of Ethiopia
for over 30 years. Dr. Birara is a regular contributor on the political
economy of Ethiopia and has authored three books. He has a Ph.D. in
InternationalDevelopmentfromJohnsHopkinsUniversity.
xi
