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McNair Scholars Research Journal

Authors

Odia Kaba

Abstract

Africa is widely recognized as the birthplace of humankind. It’s the second-largest and second-most-populous continent. The continent holds a large proportion of the world’s natural resources. Historically external forces have pursued access to Africa’s market and resources. China is experiencing rapid economic growth through trade and investment in countries in Africa. What are the implications of trade and investment for Africa, specifically in West Africa as defined by the United Nations? This paper will examine how China’s Foreign Direct Investments (FDI) and Foreign Aid (FAD) have impacted the standard of living in West Africa. It will do this by analyzing data on West African countries’ Human Development Index (HDI) and GDP per capita. The relationship will be evaluated through econometric analysis. The discussion of the findings will include implications of FDI for West African countries and whether FDIs are effective in reducing poverty in this region.

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