What Happens When Your Hand is in My Pocket: The Foreign Policy Effects of China's Foreign Direct Investment in Africa.

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Title: What Happens When Your Hand is in My Pocket: The Foreign Policy Effects of China's Foreign Direct Investment in Africa.
Authors: Ndofor, Hermann Achidi1 (AUTHOR) hermann@ndofor.com, Jones, Carla D.2 (AUTHOR) cdjones@shsu.edu, Li, Mengge3 (AUTHOR) mli3@utep.edu
Source: Journal of Business Ethics. Jun2025, Vol. 199 Issue 2, p393-412. 20p.
Subject Terms: *Social exchange, *International relations, Foreign investments, Voting, Practical politics
Geographic Terms: China, Africa
Abstract: This study utilizes social exchange theory to argue that a more complete picture of the effects of China's FDI in Africa needs to include non-economic factors, especially institutional forces that incorporate macro political considerations. We propose that economic dependencies created by China's FDI in Africa are reciprocated by votes in international organizations, and thus, we hypothesize and test that increasing China's FDI in African nations leads to increased political alignment in international affairs with those African nations. The proposed relationship, however, will be weakened for African countries with stronger governance mechanisms. Using data for China's FDI in African countries from 2001–2019, we find support for our hypotheses. We find that China's economic engagement in Africa has resulted in increased political alignment on international issues evidenced by votes in United Nations organizations raising the possibility Africa's most attractive resource may not be economic, but rather political. This, however, poses the question of whether votes are a 'resource' that can be traded for economic purposes. [ABSTRACT FROM AUTHOR]
Copyright of Journal of Business Ethics is the property of Springer Nature and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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  Data: What Happens When Your Hand is in My Pocket: The Foreign Policy Effects of China's Foreign Direct Investment in Africa.
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  Data: <searchLink fieldCode="AR" term="%22Ndofor%2C+Hermann+Achidi%22">Ndofor, Hermann Achidi</searchLink><relatesTo>1</relatesTo> (AUTHOR)<i> hermann@ndofor.com</i><br /><searchLink fieldCode="AR" term="%22Jones%2C+Carla+D%2E%22">Jones, Carla D.</searchLink><relatesTo>2</relatesTo> (AUTHOR)<i> cdjones@shsu.edu</i><br /><searchLink fieldCode="AR" term="%22Li%2C+Mengge%22">Li, Mengge</searchLink><relatesTo>3</relatesTo> (AUTHOR)<i> mli3@utep.edu</i>
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  Data: <searchLink fieldCode="JN" term="%22Journal+of+Business+Ethics%22">Journal of Business Ethics</searchLink>. Jun2025, Vol. 199 Issue 2, p393-412. 20p.
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  Data: *<searchLink fieldCode="DE" term="%22Social+exchange%22">Social exchange</searchLink><br />*<searchLink fieldCode="DE" term="%22International+relations%22">International relations</searchLink><br /><searchLink fieldCode="DE" term="%22Foreign+investments%22">Foreign investments</searchLink><br /><searchLink fieldCode="DE" term="%22Voting%22">Voting</searchLink><br /><searchLink fieldCode="DE" term="%22Practical+politics%22">Practical politics</searchLink>
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  Data: <searchLink fieldCode="DE" term="%22China%22">China</searchLink><br /><searchLink fieldCode="DE" term="%22Africa%22">Africa</searchLink>
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  Label: Abstract
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  Data: This study utilizes social exchange theory to argue that a more complete picture of the effects of China's FDI in Africa needs to include non-economic factors, especially institutional forces that incorporate macro political considerations. We propose that economic dependencies created by China's FDI in Africa are reciprocated by votes in international organizations, and thus, we hypothesize and test that increasing China's FDI in African nations leads to increased political alignment in international affairs with those African nations. The proposed relationship, however, will be weakened for African countries with stronger governance mechanisms. Using data for China's FDI in African countries from 2001–2019, we find support for our hypotheses. We find that China's economic engagement in Africa has resulted in increased political alignment on international issues evidenced by votes in United Nations organizations raising the possibility Africa's most attractive resource may not be economic, but rather political. This, however, poses the question of whether votes are a 'resource' that can be traded for economic purposes. [ABSTRACT FROM AUTHOR]
– Name: AbstractSuppliedCopyright
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  Data: <i>Copyright of Journal of Business Ethics is the property of Springer Nature and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
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      – Type: doi
        Value: 10.1007/s10551-024-05794-w
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      – Code: eng
        Text: English
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        StartPage: 393
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      – SubjectFull: Social exchange
        Type: general
      – SubjectFull: International relations
        Type: general
      – SubjectFull: Foreign investments
        Type: general
      – SubjectFull: Voting
        Type: general
      – SubjectFull: Practical politics
        Type: general
      – SubjectFull: China
        Type: general
      – SubjectFull: Africa
        Type: general
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      – TitleFull: What Happens When Your Hand is in My Pocket: The Foreign Policy Effects of China's Foreign Direct Investment in Africa.
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            NameFull: Ndofor, Hermann Achidi
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            NameFull: Jones, Carla D.
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            NameFull: Li, Mengge
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            – D: 11
              M: 06
              Text: Jun2025
              Type: published
              Y: 2025
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