Publication:
Deal or No Deal: Strictly Business for China in Kenya?

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dc.contributor.authorSanghi, Apurva
dc.contributor.authorJohnson, Dylan
dc.date.accessioned2016-04-26T17:05:29Z
dc.date.available2016-04-26T17:05:29Z
dc.date.issued2016-03
dc.description.abstractExisting work on China's economic influence in Africa refers to Africa in broad terms, thereby generalizing the results to an extent that is unhelpful for policy-makers in a specific country. Moreover, the emphasis is on oil exporters. This paper remedies this by focusing on a single, oil-importing country: Kenya. The paper examines China's economic presence in Kenya and some of the popular myths surrounding Chinese economic activity. The first myth is that Chinese companies do not employ local workers. In fact, 78 percent of full-time and 95 percent of part-time employees in Chinese companies are locals. Second, although China represents a large potential market for local exporters, the study finds that China has a better chance of expanding its exports to Kenya than Kenya does to China based on existing specializations. This may change with recent oil discoveries in Kenya, increasing the space for Kenyan exports to China, as well as from China's shift to a consumption-driven economy which will increase demand for services, a growing strength of Kenya's economy (World Bank Country Economic Memorandum 2016). The paper emphasizes that Kenyan policy makers should be less concerned about bilateral trade imbalances and worry about Kenya's overall trade balance. However, the Standard Gauge Railway and Thika superhighway experiences suggest that Chinese firms offer relatively few technology transfer or supplier opportunities for local firms and academia. Third, the popular focus of Chinese competition is on the impact on well-organized Kenyan producers and not on consumers, thereby underestimating the benefits Kenyan consumer derive from the availability of more affordable Chinese goods. The paper concludes with policy directions for improving export competitiveness and transparency in infrastructure projects, and local content.en
dc.identifierhttp://documents.worldbank.org/curated/en/2016/03/26157967/deal-or-no-deal-strictly-business-china-kenya
dc.identifier.doi10.1596/1813-9450-7614
dc.identifier.urihttps://hdl.handle.net/10986/24159
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 7614
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectTERRORISM
dc.subjectBASIS POINTS
dc.subjectCURRENCY APPRECIATION
dc.subjectEQUIPMENT
dc.subjectDEVELOPMENT ASSISTANCE
dc.subjectLOCAL CAPACITY
dc.subjectPRODUCTION
dc.subjectSTOCK
dc.subjectGLOBAL MARKETS
dc.subjectINCOME
dc.subjectINTEREST
dc.subjectPERFECT COMPETITION
dc.subjectGUARANTEES
dc.subjectINTEREST RATE
dc.subjectINTERNAL AUDITS
dc.subjectEXCHANGE
dc.subjectTREASURIES
dc.subjectCONSUMER GOODS
dc.subjectGDP PER CAPITA
dc.subjectDOMESTIC MARKET
dc.subjectEXPORTS
dc.subjectELASTICITY
dc.subjectPOLITICAL ECONOMY
dc.subjectEXPORTERS
dc.subjectECONOMIC RELATIONS
dc.subjectWELFARE
dc.subjectBONDS
dc.subjectMIDDLE INCOME COUNTRY
dc.subjectLOAN
dc.subjectDISTRIBUTION
dc.subjectCAPACITY BUILDING
dc.subjectVARIABLES
dc.subjectBORROWERS
dc.subjectTRADE SECTOR
dc.subjectTAX
dc.subjectINPUTS
dc.subjectPAYMENTS
dc.subjectINTERNATIONAL BANK
dc.subjectTRENDS
dc.subjectECONOMIC OUTLOOK
dc.subjectCENTRAL BANK
dc.subjectDEVELOPMENT
dc.subjectFOREIGN MARKETS
dc.subjectLONG-TERM DEBT
dc.subjectINFLUENCE
dc.subjectTRADE BALANCE
dc.subjectOIL PRICES
dc.subjectSAVINGS
dc.subjectCREDIT RATINGS
dc.subjectPER CAPITA INCOME
dc.subjectCOSTS
dc.subjectCURRENCY
dc.subjectEXPORT GROWTH
dc.subjectTELECOMMUNICATIONS
dc.subjectINCOME GROWTH
dc.subjectRENT
dc.subjectCONTRACTS
dc.subjectTRADING
dc.subjectINTEREST RATES
dc.subjectINDUSTRIALIZATION
dc.subjectCRITERIA
dc.subjectNET EXPORTS
dc.subjectMARKETS
dc.subjectDEBT
dc.subjectWTO
dc.subjectRETURN
dc.subjectINCOME LEVELS
dc.subjectTRADE POLICY
dc.subjectLOANS
dc.subjectDIRECT INVESTMENT
dc.subjectELASTICITY OF SUBSTITUTION
dc.subjectINVENTORIES
dc.subjectUTILITY
dc.subjectNATURAL RESOURCES
dc.subjectNATIONAL TREASURY
dc.subjectRULE OF LAW
dc.subjectCOMMODITY PRICE
dc.subjectTAXES
dc.subjectMICRO ENTERPRISES
dc.subjectEXPENDITURE
dc.subjectDEBT LEVELS
dc.subjectCREDIT LINE
dc.subjectINTERNATIONAL STANDARDS
dc.subjectEQUITY
dc.subjectSAVINGS RATES
dc.subjectINVESTORS
dc.subjectCONSUMPTION
dc.subjectVALUE ADDED
dc.subjectGOOD
dc.subjectECONOMIC PERFORMANCE
dc.subjectCAPITAL
dc.subjectWAGES
dc.subjectINTERNATIONAL TRADE
dc.subjectTRANSPARENCY
dc.subjectSOVEREIGN RISK
dc.subjectECONOMIC_RELATIONS
dc.subjectEXPORT COMPETITIVENESS
dc.subjectTURNOVER
dc.subjectFUTURE
dc.subjectSAVINGS RATE
dc.subjectVALUE
dc.subjectCOMPETITIVENESS
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectRETURNS
dc.subjectCREDIT
dc.subjectMACROECONOMICS
dc.subjectDEVELOPMENT STRATEGY
dc.subjectFOREIGN INVESTMENT
dc.subjectDEMAND
dc.subjectUTILITY FUNCTION
dc.subjectSHARE OF INVESTMENT
dc.subjectECONOMY
dc.subjectCONSUMERS
dc.subjectPROPERTY
dc.subjectEQUITY STAKE
dc.subjectACCOUNTANT
dc.subjectREAL EXCHANGE RATE
dc.subjectMARKET
dc.subjectECONOMIC THEORY
dc.subjectFOREIGN EXCHANGE
dc.subjectRISK MANAGEMENT SYSTEM
dc.subjectPUBLIC DEBT
dc.subjectEXPORTER
dc.subjectTREASURY
dc.subjectHOUSEHOLD SAVINGS
dc.subjectINSURANCE
dc.subjectGOVERNMENT POLICIES
dc.subjectTRADE
dc.subjectGDP
dc.subjectINVESTOR
dc.subjectGOODS
dc.subjectTHEORY
dc.subjectMARKET SHARE
dc.subjectSECURITY
dc.subjectECONOMIES OF SCALE
dc.subjectDURABLE
dc.subjectGROWTH RATE
dc.subjectBILATERAL TRADE
dc.subjectINVESTMENT
dc.subjectEXTREME POVERTY
dc.subjectSOVEREIGN BONDS
dc.subjectSHARE
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectINVESTMENT CLIMATE
dc.subjectTAX SYSTEM
dc.subjectPOVERTY
dc.subjectTARIFF
dc.subjectPOOR CREDIT RATINGS
dc.subjectCOMPETITIVE MARKETS
dc.subjectDECENTRALIZATION
dc.subjectBID
dc.subjectREVENUE
dc.subjectINVESTMENTS
dc.subjectRISK MANAGEMENT
dc.subjectMONOPOLISTIC COMPETITION
dc.subjectEXCHANGE RATE
dc.subjectPRICE CONTROLS
dc.subjectCAPITAL INVESTMENT
dc.subjectCOMMODITY PRICES
dc.subjectDURABLES
dc.subjectGROWTH POTENTIAL
dc.subjectPOSITIVE EFFECTS
dc.subjectPRICES
dc.subjectDEVELOPMENT BANK
dc.subjectPRODUCTION COSTS
dc.subjectDEVELOPMENT POLICY
dc.subjectCOMPETITION
dc.subjectFUTURE RESEARCH
dc.subjectINVESTING
dc.titleDeal or No Dealen
dc.title.subtitleStrictly Business for China in Kenya?en
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleDeal or No Deal: Strictly Business for China in Kenya?
okr.date.disclosure2016-03-23
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/2016/03/26157967/deal-or-no-deal-strictly-business-china-kenya
okr.guid801581468195561492
okr.identifier.doi10.1596/1813-9450-7614
okr.identifier.externaldocumentum090224b08425168c_1_0
okr.identifier.internaldocumentum26157967
okr.identifier.reportWPS7614
okr.importedtrue
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2016/03/31/090224b08425168c/1_0/Rendered/PDF/Deal0or0no0dea0for0China0in0Kenya00.pdfen
okr.region.administrativeAfrica
okr.region.administrativeEast Asia and Pacific
okr.region.countryChina
okr.region.countryKenya
okr.topicInternational Economics and Trade::Foreign Direct Investment
okr.topicInternational Economics and Trade::Trade Policy
okr.topicInternational Economics and Trade::Export Competitiveness
okr.topicInternational Economics and Trade::Capital Flows
okr.topicFinance and Financial Sector Development::Access to Finance
okr.unitMacroeconomics and Fiscal Management Global Practice Group
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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