Abstract

In the context of a popular topic, China's investment in Africa, this paper delves into China's resource focused investment and the impact that this investment has on African wage inequality. The theoretical model expands on the classic 2x2 Heckshcher-Ohlin Stopler Samuelson model, and a more recent theoretical ideology known as the "Dutch Disease" model, to show how changes in the relative supply and relative price of African resource goods can affect African wage inequality. A discourse analysis comparing and contrasting the conflicting perspectives of the Chinese media, Western media, and African media revealed three different ideological stances on the issue of Sino-African relations. OLS regression models were conducted, and although results showed that Chinese FDI and corruption had a correlation with greater African inequality. However, due to data availability and estimation issues, the results should be taken with caution and under suspicion. Review of media sources, journal articles, books, and documentaries revealed that African countries must be cautious of China's FDI, and China's goal of extracting African natural resources. Thus, African governments and its leaders must devise proper policies towards Chinese FDI, in order to protect themselves from resource exploitation.

Advisor

Moledina, Amyaz

Second Advisor

Wang, Rujie

Department

Chinese Studies; International Relations

Disciplines

Chinese Studies | International Relations

Publication Date

2013

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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© Copyright 2013 Xiaochen Zhang