Chinese Potential Advantages To Renewable Energy Investment: A Case Study Of Congo-Brazzaville

The goals of this study are to determine all the possibilities for achieving an investment in renewable energy to Congo-Brazzaville and what profits China gain resulting from the exchange of goods by also taking into account its advantages and disadvantages.The technique used in this paper is the David Ricardo theory of the comparative advantage (CA) and the revealed comparative advantage index (RCA) based on different measures which show the pattern of flows/trade specialization from China to Congo on sectoral levels the comparative advantage is the suitable way for China to achieve the investment in renewable energy.However the process difficult, it can be improved if the supplier should keep in mind that their performance in trade with customer matter in order to keep a long term relationship.This study was conducted in the period of 2003-2016 using the Trading economic, World bank database, Research and expertise on the world economy RCA, the Observatory of economic complexity and the international world database.The result shows that by comparing 20 countries pair-product specific export flows to Congo-Brazzaville by using exporter-product and importer-product fixed effects,RCA for Textiles, Paper, Machinery and equipment, Metal products, and Transport equipment:China = 6.09 > other countries => China has a potential advantage in the production of more goods than other countries. Those goods are mostly metals also used for the construction of solar panel, etc for the production of renewable energy with a lower opportunity cost of labor.So China is the best investor that Congo should trade with, by trading in the exchange of goods.On the basis of the results of this research, it can be concluded that China is the country who has the potential advantage compare to other countries and as a potential investor should provide a large amount of labor through his technology (power supply in the construction of panel solar) into renewable energy while benefit from exporting raw materials from Congo.