Factor Endowments in a South- South Relation
Trade Preferences, Migration and Inequality for Chinain Africa
- Editore:
VDM Verlag
- EAN:
9783639112207
- ISBN:
3639112202
- Pagine:
- 52
- Formato:
- Paperback
- Lingua:
- Tedesco
Descrizione Factor Endowments in a South- South Relation
China's new partnership with Africa has created oneof the most interesting South- South relationships.Through its growing demand for natural resources,China has turned into one of the largest investors inAfrica; some patterns indicate a vested North- Southrelation with China in the role of the USA. Thedifferent endowments of the regions lead to differentoutcomes, most notably in migration and inequality. The labour abundance of China in combination with itscapital abundance in relation to Africa creates apattern of migration of unskilled labour which isrelatively unprecedented in this form. This on theother hand has also effects on unskilled labour inAfrica. As for inequality, trade based on differentendowments benefits different parts of the society.Only because of being labour abundant, China couldachieve a significant reduction of poverty throughopenness to investment and trade. Africa is in adifferent position. The continent's land abundancebenefits mainly the land owning elite with furtherimplications for trade preferences or migration.
