The Impact of China-Africa Trade on the Productivity of African Firms: Evidence from Ghana

Using both firm-level and industrial-regional panel analysis, this study investigates the impact of the Ghana-China trade engagement on the total factor productivity of Ghanaian manufacturing firms and compares that to the impact induced by Ghana-OECD trade. The main findings suggest that there have been evident learning effects emerging after the Ghanaian manufacturing firms engaged in international trade activities. Yet, the strength of such effects depends on the type of trading partners and industry characteristics. The empirical results show that higher intensities of exports and imports with China, yield TFP gains. The learning effects are found to be greater in industries in which the country has comparative advantage than those further away from its comparative advantage. 

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