The Analysis Of The Impact Path Of China's OFDI On The Africa's Economy Growth

Africa has identified foreign direct investment as a key way to boostits economic growth.China is striving tooffer Africa a new model ofdevelopment,which is an alternative to the western style that depends on commercial relations and fair market.It prioritizes stability over democracy by providing an alternative developmental model that promotes product differentiation that allows decent competitiveness in different market mechanism and provides more job opportunities to the host countries at the same time.This study makes use of the statistical descriptive method which is supported and complemented the study by analyzing the influence of the OFDI(Outward Foreign Direct Investments)inflow in a quantitative way.Since the Reform and the start of Opening-up,China adheres more to the win-win strategy of opening-up with the world,and is actively participating in the construction of economic globalization.China's direct investment in Africa is been growing rapidly in general,but there has been some voices casting doubts on its strategy of mutual benefit and the cooperation with African countries.This paper studies the impact path of China's OFDI on the economic growth of Africa,which is conducive to the reasonable evaluation of the mutual benefit situation of China's direct foreign investment and the development of Africa.Based on related literature and data,there is an analysis of the mechanism of OFDI on economic growth.In the empirical analysis,this paper takes countries in Africa from 2003 to 2018 as samples and shows the contribution of China5 OFDI on the capital,employment and technological progress of the host countries in Africa to lead the economic growthThe Research has shown that although China's direct investment path to Africa is not unilateral,it has a significant effect on Africa's economic growth through the three paths of capital,employment and technology,and it has a positive effect on future development.Based on the results of the study,it is proposed that China should continue to expand the scale and scope of direct investment in Africa and continue to promote the development of African countries through diversified cooperation.