One of the many byproducts of globalization has been the surge of free trade agreements, bilateral trade agreements, and regional trade agreements signed internationally as markets respond to increased global demand. Despite China and Nigeria signing bilateral trade agreements, it is clear that China has benefitted more from this relationship than has Nigeria, at least in the short-run. If Nigeria is to increase its economic development and decrease corruption amongst the political elite, promote good governance and effective monetary policies, it would be able to use the current influx of Chinese money from oil revenue to develop into a hub for numerous foreign investors venturing into the African market. In this paper we examine whether the association between these two countries should be considered neo-colonial exploitation by a global super power or a mutually beneficial relationship for emerging economies based on vital commodities such as crude oil.
History of the Chinese-Nigerian Relationship
Beginning in the early 1950s and extending into the 1970s, China ventured into the African continent primarily as a promoter of Maoist-Socialist teachings and command economics towards nascent governments. In 1971, China and Nigeria forged diplomatic relations that eventually culminated into permanent bilateral trade agreements and investments. However, it was not until the 1990s that China returned--as a foreign direct investor--intent on investing in projects that would exploit the continent’s wealth of natural resources for exports, its abundant natural resource reserves, and the diplomatic leverage it would gain from forging strategic partnerships. Beginning in the late 1960s and continuing until the late 1990s...
... middle of paper ...
... of Democratization. Ibadan: Institut français de recherche en Afrique, 2001. (pp. 259-287) Web.
“Special Economic Zones”. Britannica: Academic Edition : Web. 20 March 2014. http://www.britannica.com/EBchecked/topic/558530/special-economic-zone-SEZ
Udeala, Samuel Onuoha. “Nigeria-China Economic Relations Under the South-South Cooperation”. African Journal of International Affairs, Vol. 13, Numbers 1&2, pp. 61-88, 2013.
Wagner, Daniel and Giorgio Cafiero. “China and Nigeria: Neo-Colonialism, South-South Solidarity, or Both?”. The World Post. 19 July 2013. Web. 20 Feb. 2014. http://www.huffingtonpost.com/daniel-wagner/china-and-nigeria-neocolo_b_3624204.html
Waters Jr., Robert Anthony. “Historical Dictionary of United States-Africa Relations”. Lanham, MD: Scarecrow Press, 2009. Electronic (Print)
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- With $3 trillion in foreign exchange reserves and a growing need for resources to power its growth, China has been ramping up investments around the world. The Net outward-bound foreign direct investment (FDI) by Chinese companies grew from $5.5 billion in 2004 to $68.81 billion in 2010. Below are the countries China has foreign investments with: • United States: (FDI 2014-2016: $73.94 Billion) • Australia: (FDI 2014-2016: $24.95 billion) • Russia: (FDI 2014-2016: $14.7 billion) • Singapore: (FDI 2014-2016: $7.71 billion) • Canada: (FDI 2014-2016: $6.81 billion) • Myanmar: (FDI 2014-2016: $2.47billion) • South Africa: (FDI 2014-2016: $340 million) Chinese direct investment in the U.S.... [tags: Investment, Foreign direct investment]
934 words (2.7 pages)
- Foreign Direct Investment ( FDI) is a source that a country obtain from other countries in order to add value for it’s own economy. These sources can be various: Economic or technological. Foreign Investors may establish a new facility or open their branch or establish a partnership with a local company in host country. Nowadays, there is more demand of FDI’s than the world trade and world output. This drastic rise in FDI is due to the help of changing potentials and economic policies that are happening in the developing countries worldwide (Alesina and Dollar, 2000).Investors are more likely to invest their money on more profitable places,it would not be reasonable for companies to inve... [tags: Investment, Foreign direct investment]
1689 words (4.8 pages)
- 1) The article discusses about current foreign direct investment (FDI) activities in China and how the devaluation of yuan has impacted the inflow and outflow of FDI in China. The article reports that in China FDI fell by 5.8% in December from a year earlier to 77 billion yuan ($12 billion). FDI can be defined has when a firm invests directly in new facilities to produce and/or market in a foreign country. Additionally, FDI leads the firm to become a multinational enterprise (MNE). As discussed in the lectures, FDI can be done various ways such as Greenfield investments, Cross-Border Mergers and Acquisitions (M&A) investments, and finally Brownfield Investment.... [tags: Investment, Foreign direct investment]
702 words (2 pages)
- Concept: Foreign Direct Investment (FDI) Flow of money for the purpose of investments from one country to another country is called as Foreign Direct Investments. It is an investment made by a company based in one country for long lasting interest or controlling stake into a company in a foreign country. The nature of FDI could be either be inward or outward. Inward FDI refers to direct investments flowing into the home country from foreign land, and outward FDI refers to home country making direct investments in foreign land.... [tags: Foreign direct investment, Investment]
1785 words (5.1 pages)
- Foreign direct investment (FDI) has played a considerable role in the development of South Africa’s economy, although in more recent years FDI has remained at relatively low levels compared with other emerging market countries. Most research papers on FDI in South African deal with FDI flows and do not take into consideration the main determinants. The theoretical foundation on the location pattern of FDI is rather fragmented. Several theories have been put forward to explain FDI based on corporate strategies and investment decisions of firms facing worldwide competition and in the context of choosing to operate in a foreign location instead of exporting or entering into a licensing agreemen... [tags: Investment, Foreign direct investment]
838 words (2.4 pages)
- Many writers have tried to figure out if there is a direct link between Foreign direct investment (FDI) and economic growth of an economy in terms of Gross domestic product (GDP) but a reliable procedure hasn’t been found yet. Sharma (2008) tends to assume that if more investments take place in developing Countries then there will be an augmenting effect on the economy and likewise if there is little or no FDI then there will be a growth retarding effect. The first part of the paper tries to see what other authors have to say though we have limited articles regarding Foreign direct investment and economic growth if it has a positive or negative effect, the second part tries to see the metho... [tags: Foreign Direct Investment, government,]
994 words (2.8 pages)
- 1) The article discusses about the current foreign direct investment (FDI) activities in China and how the devaluation of yuan has impacted the inflow and outflow of FDI in China. The article reports that in “China FDI fell by 5.8% in December from a year earlier to 77 billion yuan ($12 billion)”. FDI can be defined has when a firm invests directly in new facilities to produce and/or market in a foreign country. Additionally, FDI leads the firm to become a multinational enterprise (MNE). As discussed in the lectures, FDI can be done various ways, such as Greenfield investments, Cross-Border Mergers and Acquisitions (M&A) investments, and finally Brownfield Investment.... [tags: Risk, Investment, Foreign exchange market]
2069 words (5.9 pages)
- Foreign Direct Investment in Myanmar (Graphics not Included) Since 1962 the Burmese government has been under military rule (Country Profile, 2007). The lives of the Burmese citizen are dictated by the totalitarian style of government which led to horror and starvation, causing numerous protests against the government. The latest protest in 2007 was planned and organized by the same student groups which took part in the similar protest earlier in 1988. The first protest was held on 15 September 2007 with protesters protesting on streets in Yangon on nearly a daily basis.... [tags: FDI Foreign Direct Investment]
1969 words (5.6 pages)
- Foreign trade Foreign trade is exchange of capital, goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product (GDP). (http://www.yourarticlelibrary.com) It is a trade between two or more countries and we can separate into three parts. • Import- Affluent countries import resources and commodities when they find comparative advantages in sourcing from foreign locations. (Holt, Wigginton, 2002) • Export – involves selling domestically produced products in foreign market through brokers or overseas distribution centres.... [tags: foreign trade, direct investment, global economy]
879 words (2.5 pages)
- Introduction In macroeconomics, foreign direct investment has been defined as the direct investment made in a country by foreign individuals or corporate organizations. On a broader view, FDI refers to activities such as acquisitions and mergers, building of new facilities like factories and joint ventures. Zilibotti (2009) posits that there are three major forms of Foreign Direct Investment: Horizontal FDI where corporate investors duplicate the same activities in their home country in the country of investment, Platform FDI where the corporate invests in a country as a platform for exporting to another third country and vertical FDI where corporate investors downstream or upstream in a val... [tags: corporate, organization, country, investment]
1167 words (3.3 pages)