TY - JOUR
T1 - Complementary development between china and sub-sahara africa
T2 - Examining china’s mining investment strategies in Africa
AU - Wang, Xiaoliang
AU - Yu, Danlin
AU - Yuan, Chunhua
N1 - Publisher Copyright:
© 2021 by the authors. Licensee MDPI, Basel, Switzerland.
PY - 2021/11/1
Y1 - 2021/11/1
N2 - China’s recent national and international regional development strategies emphasize both the deepening of the domestic market and the exploration of new markets and resource suppliers to support China’s industrialization. The cooperation with, and investment in, Africa has become an integrated part of China’s international regional development strategy. Investment in Africa is often the result of a decision process that requires balance among local complex political, economic, social, and geological conditions. Proper decision support analysis is the key for success or failure of complementary development. Based on location theories, the current study analyzes China’s mining investment in Africa and derives a set of indicators to form the basis for evaluating China’s investment strategies in the mining industries in Africa. A multi-criteria decision making (MCDM) approach, the VIKOR method, is applied to evaluate six African countries based on this set of indi-cators. Results suggest that while resource abundance and value are important factors for mining investment decisions, political stability and local legal system restrictions are weightier in the deci-sion-making process. China’s outward foreign direct investment (OFDI) in mining industries in Africa is more inclined to countries with stable political environment, resource endowment and greater value advantage so that both parties can maximize the benefits from such investment.
AB - China’s recent national and international regional development strategies emphasize both the deepening of the domestic market and the exploration of new markets and resource suppliers to support China’s industrialization. The cooperation with, and investment in, Africa has become an integrated part of China’s international regional development strategy. Investment in Africa is often the result of a decision process that requires balance among local complex political, economic, social, and geological conditions. Proper decision support analysis is the key for success or failure of complementary development. Based on location theories, the current study analyzes China’s mining investment in Africa and derives a set of indicators to form the basis for evaluating China’s investment strategies in the mining industries in Africa. A multi-criteria decision making (MCDM) approach, the VIKOR method, is applied to evaluate six African countries based on this set of indi-cators. Results suggest that while resource abundance and value are important factors for mining investment decisions, political stability and local legal system restrictions are weightier in the deci-sion-making process. China’s outward foreign direct investment (OFDI) in mining industries in Africa is more inclined to countries with stable political environment, resource endowment and greater value advantage so that both parties can maximize the benefits from such investment.
KW - AHP
KW - China
KW - Complementary development
KW - Investment decision support
KW - Mining investment
KW - VIKOR
UR - http://www.scopus.com/inward/record.url?scp=85117605785&partnerID=8YFLogxK
U2 - 10.3390/su132111678
DO - 10.3390/su132111678
M3 - Article
AN - SCOPUS:85117605785
SN - 2071-1050
VL - 13
JO - Sustainability (Switzerland)
JF - Sustainability (Switzerland)
IS - 21
M1 - 11678
ER -