The Effectiveness Of China’s Investment On GDP In Mali

China’s vastly increased involvement in Africa over the past decade is one of the most significant recent developments in the region. It seems to contradict the idea of international marginalization of Africa and brings significant economic and political consequences. China’s Africa interest is now a recent more active international strategy based on multi-polarity and non-intervention. FDI flows are considered as the effectively supportive capital that has contributed to the national growth, especially in developing countries. Most of the scientific researches in the last decade have shown that the rapid china’s involvement in Africa is seeking oil and raw materials to ensure its own development sustainability.The purpose of this present study is to investigate the impact of Chinese foreign direct investment on economics growth in Malian context. Vector auto regression model was employed to achieve the objective of the study. We employed annual data from the period1980to2010collected from World Bank database. The analysis was conducted in fourth steps. First step consisted of unit root test using Augmented-Dickey-Fuller (ADF) test which revealed the stationary of series after their first differences. This was followed by the choice of optimum lag length using AIC and SC criteria. Lag one was chosen. In the second step, we took co-integration test to investigate the existence of long-run relationship between the variables, which is the criteria to employ the Vector Error correction model. There is no co-integration among variables and allowed us to proceed to VAR model specification in the third step. The results revealed a positive and significant effect of FDI on GDP growth. Chinese foreign direct investment caused significant and positive change in economic development during the last30years in Mali. The study showed that when foreign aid has more positive and significant impact on GDP compared to foreign direct investment. This attests low foreign direct investment inflows in Mali which may be due to the low level of development and the political instability. The results obtained are that if the FDI increase of one unit the unit of GDP increase of4.25%, but the increasing of one uit of aid implies an increasing of33,9%of GDP unit. Malian government should create conducive environment that will attract more Chinese investments which will help in economics development and its population welfare. Mali should use the opportunity that offers Chinese foreign direct investments to build projects which will promote economic development. Mali should strengthen and build strong relationship with Chinese government in order to have mutual trust in both sides to be able attract more Chinese investors in the country.