Journal Screenshot

International Journal of Academic Research in Economics and Management Sciences

Open Access Journal

ISSN: 2226-3624

An Analysis of the Impact of Chinese Competition on Zimbabwe’s Manufacturing Exports in Third Markets

Fanuel Hazvina

http://dx.doi.org/10.6007/IJAREMS/v10-i1/9803

Open access

This study analyses the impact of Chinese competition on Zimbabwe’s manufacturing exports in thirds markets using the Index of Competitive Threat (ICT) and the Constant Market Share (CMS) analysis. The ICT results reveals that competitive threat from China has increased between 2001 and in most of Zimbabwe’s major African export markets. The CMS analysis findings reveals that Zimbabwe lost market share to China in export markets that include South Africa, Zambia, UAE and Mozambique. Zimbabwe marginally gained market share from China in Belgium, France and Malawi. The products greatly affected are mainly from the labour intensive sectors such as mining, agriculture, clothing and textiles and light manufacturing sectors. The study recommends that Zimbabwe move up the ladder in terms of export structure and upgrading its industry through value addition to enable its exports to compete at the highest level of that ladder. It should embark on qualitative upgrading of its exports as a way of offsetting at least part of the competitive pressure coming from China.

Adams, F. G., Gangnes, B., & Shachmurove, Y. (2006). Why is China so competitive? Measuring and explaining China’s competitiveness. The World Economy, 29(2), 95–122.
https://doi.org/10.1111/j.1467-9701.2006.00773.x
Ademola, O. T., Bankole, A. S., & Adewuyi, A. O. (2009). China-Africa trade relations: Insights from AERC scoping studies. European Journal of Development Research, 21(4), 485–505. https://doi.org/10.1057/ejdr.2009.28
Ado, A., Su, Z., Ado, A., & Su, Z. (2016). China in Africa?: a critical literature review. https://doi.org/10.1108/cpoib-05-2013-0014
Ajakaiye, O. (2006). China and Africa - Opportunities and Challenges. African Union Task Force on Strategic Partnership Between Africa and the Emerging Countries of the South Addis Ababa, Ethiopia, 11–13 September 2006, September, 1–14.
http://www.africaportal.org/dspace/articles/china-and-africa-–-opportunities-and-challenges
Batista, J. C. (2006). A New Extended Constant Market Share Model. 1951.
Chen, K. Z., Duan, Y., & Chen, K. Z. (2001). Competitiveness of Canadian Agri-Food Exports Against Competitors in Asia Competitiveness of Canadian Agri-Food Exports Against Competitors in Asia?: 1980-97. 4438. https://doi.org/10.1300/J047v11n04
COMESA. (2014). Impact Assessment of Concluding an EPA with EU on Zimbabwe’s Economy, COMESA Secretariat, Lusaka, Zambia.
Eichengreen, B., Rhee, Y., & Tong, H. (2004). THE IMPACT OF CHINA ON THE EXPORTS OF OTHER ASIAN COUNTRIES. In NBER WORKING PAPER SERIES (Vol. 39, Issue Working Paper 10768). http://search.ebscohost.com/login.aspx?direct=true&db=poh&AN=89040178&site=ehost-live
Fagerberg, J., & Sollie, G. (1987). The method of constant market shares analysis reconsidered. Applied Economics, 19(12), 1571–1583. https://doi.org/10.1080/00036848700000084
Fleming, A. J. M., & Tsiang, S. C. (1956). Changes in Competitive Strength and Export Shares of Major Industrial Countries Changes in Competitive Strength and Export Shares of Major Industrial Countries. 5(2), 218–248.
Geda, A., & Meskel, A. G. (2008). China and India’s growth surge: Is it a curse or blessing for Africa? The case of manufactured exports. African Development Review, 20(2), 247–272. https://doi.org/10.1111/j.1467-8268.2008.00184.x
Giovannetti, G., & Sanfilippo, M. (2009). Do Chinese exports crowd-out African goods? An econometric analysis by country and sector. European Journal of Development Research, 21(4), 506–530. https://doi.org/10.1057/ejdr.2009.20
Giovannetti, G., Sanfilippo, M., & Velucchi, M. (2010). The “ China effect ” on Italian Exports. November, 1–18.
Giovannetti, G., & Sanfilippo, M. (2009). Do Chinese Exports Crowd-Out African Goods?? An econometric analysis by country and sector. 1–21.
Greenaway, D., Mahabir, A., & Milner, C. (2008). Has China displaced other Asian countries’ exports? China Economic Review, 19(2), 152–169.
https://doi.org/10.1016/j.chieco.2007.11.002
Hanson, G., & Robertson, R. (2010). China and the manufacturing exports of other developing countries. In R. Feenstra & S.-J. Wei (Eds.), China's growing role in world trade. Cambridge: National Bureau of Economic Research.
Husted, S., & Nishioka, S. (2013). China’s fare share? The growth of Chinese exports in world trade. Review of World Economics, 149(3), 565–585. https://doi.org/10.1007/s10290-013-0149-2
Jenkins, R. (2012). China and Brazil?: Economic Impacts of a Growing Relationship.
Jenkins, R., & Edwards, C. (2006). The Asian drivers and sub-Saharan Africa. IDS Bulletin, 37(1), 23–32. https://doi.org/10.1111/j.1759-5436.2006.tb00244.x
Jenkins, R., & Edwards, L. (2013). IS CHINA “ CROWDING OUT ” SOUTH AFRICAN EXPORTS OF MANUFACTURES *. 1–26.
International Monetary Fund (IMF) (2004). World Economic Outlook April 2006. Washington DC: International Monetary Fund.
Kaplinsky, R., Mccormick, D., & Morris, M. (n.d.). China and Sub Saharan Africa?: Impacts and Challenges of a Growing Relationship.
Lall, S., & Albaladejo, M. (2004). China’s competitive performance: A threat to East Asian manufactured exports? World Development, 32(9), 1441–1466. https://doi.org/10.1016/j.worlddev.2004.03.006
Lin, J. Y., & Wang, Y. (2014). WIDER Working Paper 2014/046 China-Africa co-operation in structural transformation: Ideas, opportunities, and finances - WP2014-046.pdf (Issue February). http://www.wider.unu.edu/stc/repec/pdfs/wp2014/WP2014-046.pdf
Ndlela, D., and Tekere, M. (2003) Impact Assessment of Economic Partnership Agreements on Southern African Development Community and Preliminary Adjustment Scenarios. Harare, Zimbabwe: Trade and Development Studies Centre.
Qureshi, M. S., & Wan, G. (2006). Trade Potential of China and India: Threat or Opportunity? † Mahvash Saeed Qureshi. 1–28.
Razmi, A., & Blecker, R. A. (2006). Developing Country Exports of Manufactures: Moving Up the Ladder to Escape the Fallacy of Composition? (Issue April).
Schiere, R., Ndikumana, L., & Walkenhorst, P. (2011). China and Africa: An emerging partnership for development? In African Development Bank Group (Issue May).
Sekakela, K. (2014). BIDPA Working Paper 40 (Issue September).
Song, L., Li, K. (2005). China’s trade expansion and the Asia Pacific economies. The China Boom and Its Discontents. https://doi.org/10.1515/9783110800487.39
Stevens, C., & Kennan, J. (2006). How to Identify the Trade Impact of China on Small Countries. 37(1), 33–42.
Yang, T. Z., and D. V. (2000). The Fallacy of Composition and the Terms of Trade of Newly Industrializing Economies. Review of World Economics, 143(2), 201–226. https://doi.org/10.1007/s10290-007-0105-0
Zimtrade. (2014). Final_Export_Capacity_Survey_Report_2013-12-19_(1)[1]. ZIMTRADE.

In-Text Citation: (Hazvina, 2021)
To Cite this Article: Hazvina, F. (2021). An Analysis of the Impact of Chinese Competition on Zimbabwe’s Manufacturing Exports in Third Markets. International Journal of Academic Research in Economics and Managment and Sciences, 10(1), 188–205.