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Sustainable Development and China–Africa Engagement: A Resource-Centric Analysis

Tawiah, Vincent orcid logoORCID: 0000-0003-1679-387X and Borgi, Hela (2025) Sustainable Development and China–Africa Engagement: A Resource-Centric Analysis. Sustainability, 17 (11). ISSN 2071-1050

Abstract
The increasing economic engagement of China in Africa through foreign direct investment (FDI) and trade has raised concerns about its environmental consequences, particularly resource depletion. While the existing literature highlights the role of FDI and trade in resource exploitation, the varying impacts across governance contexts remain underexplored. This study investigates how Chinese FDI and trade influence resource depletion in Africa, integrating institutional and resource curse perspectives to explain divergent outcomes. Using dynamic panel data models and the system generalized method of moments (SGMM) to address endogeneity, we analyze data from 28 African countries between 1998 and 2022. The results show that Chinese FDI significantly accelerates resource depletion—particularly total resources, energy, and forests—especially in low-governance countries. In contrast, Chinese trade exhibits a limited relationship with depletion, with significant effects only on energy resources in weak institutional settings. Notably, neither FDI nor trade has significant effects in high-governance countries, underscoring the protective role of strong institutions. The study contributes to the literature by demonstrating how governance quality mediates the environmental impacts of Chinese economic engagements. It offers policy insights for African nations, emphasizing institutional strengthening to align foreign investments and trade with sustainable resource management. These findings call for balanced economic policies that prioritize environmental sustainability alongside economic growth.
Metadata
Item Type:Article (Published)
Refereed:Yes
Uncontrolled Keywords:China–Africa engagement; natural resource depletion; Chinese FDI; environmental sustainability; economic development
Subjects:Business > Economic policy
Business > Economics
DCU Faculties and Centres:DCU Faculties and Schools > DCU Business School
Publisher:MDPI AG
Official URL:https://www.mdpi.com/2071-1050/17/11/4883
Copyright Information:Authors
ID Code:33046
Deposited On:28 Jul 2026 09:42 by Tam Nguyen . Last Modified 28 Jul 2026 09:42
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