What is it about?

This study is an exercise audit of the impact of Chinese and Indian economic activities on Ethiopia's economic growth and examines the period from 1992 to 2016. Through a series of interviews with ordinary Ethiopians, scholars, businesspersons, company employees and informants close to the authority, and survey of the existing literature, this study identifies the benefits and challenges associated with Chinese and Indian investment in the current Ethiopian context and discuss whether current policy regarding this investment and aid is ultimately beneficial. Again, this study identifies critical issues to Ethiopia's continued sustainable development.

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Why is it important?

One of the major difficulties facing Africa's economic revival is a shortage of foreign direct investment (FDI), limited funds for economic development, scarce access to transformative technology, heavy external debt, and debt-trap diplomacy. Similarly, African countries continue to face challenges, including a colonial legacy, imperial ideologies, and resource plunder, following their independence. It is possible that as Africa's investment market continues to expand, the economy of the continent will persist in developing and the challenges that the continent faces will slowly diminish. The study also compares the Asian FDI inflow drivers in various domains, such as their employment opportunities, skill and technology transfer; investment participation with or without the intervention of the state government; and influence on Ethiopia's economy. This study was formulated based on practical case studies of the Asian drivers' impact on Ethiopia's socio-economic status in hopes of providing a reference for scholars, government officials, research departments, economists and investors.


This study presents a comparative analysis of Chinese and Indian investment in Africa, particularly in Ethiopia and the study includes two case studies on Ethiopian society’s attitudes toward the presence, prospects, and perspective of Chinese and Indian investment projects which is one of the most important economic issues currently facing developing African nations. Understanding the consequences of foreign direct investment from the perspective of ordinary Africans is critical to developing and improving policies and ensuring the achievement of development goals.

Dr. Amsalu K. Addis
Hubei University

Read the Original

This page is a summary of: Assessment of the Impact of Chinese and Indian Economic Activities in Africa: A Particular Focus on Ethiopia’s Economy, China Report, August 2019, SAGE Publications,
DOI: 10.1177/0009445519853699.
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