Working Paper

China, India and African Manufacturing Framework for Understanding the Impact of Aid and Migration

“This paper attempts to analyse two variables that are not regularly considered when discussing the impact of China and India on African manufacturing: Aid and
migration. The two are among the channels through which China and India affect African manufacturing and, through manufacturing, development outcomes.The centrepiece of this analysis is the manufacturing sector. In each country and in Africa as a whole, the manufacturing sector can be described by its size, structure, performance, and market orientation. Impacts flowing through a particular channel may affect all or only some of these. Impacts through trade, for example, may affect large firms positively by promoting export growth, but at the same time intensify competition in the domestic market where small firms predominate.”