CHINESE FIRMS AND EMPLOYMENT DYNAMICS IN SUB-SAHARAN AFRICA: A COMPARATIVE ANALYSIS

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The dramatic upsurge during the 2000s of Chinese investment (both public and private) in sub-Saharan Africa has sparked much discussion and controversy about its development impact. However, despite some recent advances in research, concrete evidence on this impact has remained limited. This research will focus specifically on gathering concrete information on the employment effects of such investment. But this research will not confine itself to examining just Chinese FDI. It will also investigate the impact of the much broader category of what are called 'Chinese overseas contracted projects'. These initiatives, which include Chinese aid, have grown exponentially in recent years, and have often taken the form of construction projects.In order to gauge the employment effects of such initiatives, firm-level and worker-focused surveys will be conducted in two sectors, construction and manufacturing, in two countries where such Chinese investment has been substantial, i.e., Angola and Ethiopia. Though Chinese firms have created more employment in construction in both countries, the recent increase in Chinese investment in manufacturing is particularly important because it could portend significant increases in higher-productivity jobs, which are in short supply throughout sub-Saharan Africa.This research will assess the impact of Chinese investment in three specific areas: the employment, working conditions and skill development of national workers. Worker-level interviews will be important to the project because they will enable researchers to develop a more dynamic picture of the employment conditions of national workers. For example, the workers interviewed will be asked about their previous employment so that comparisons can be drawn with their current conditions in Chinese firms. Moreover, such worker-level interviews will be utilized to identify workers who have left Chinese firms in order to secure new jobs in national firms or in self-employment. Such workers will subsequently be interviewed in order to determine whether their employment in Chinese firms was a springboard for improved future employment. Of particular concern will be the effect of employment in Chinese firms on training and general skill development.This research project will also seek to compare employment conditions in Chinese firms in sub-Saharan Africa to the employment conditions of Chinese workers themselves in similar firms in China. This research will be carried out by both researchers in China and researchers in the United Kingdom who are China specialists. But this aspect of the project's research will not be based on new surveys but on the gathering of all relevant available material on labour conditions in China and especially their recent evolution. Of particular concern will be the effect of recent trends in employment conditions and any changes in the policy of the Chinese government that could have influenced the conduct of Chinese firms investing in sub-Saharan Africa.The intent of this research project is to have an important impact on the character of the ongoing debate on the development impact of Chinese firms located in sub-Saharan Africa. Particularly important will be the effect of our results on the policy stance of governments and regional development organizations in sub-Saharan Africa. But also one of the project's major objectives is to influence the character of the broader debate within the international development community on the employment effects of development cooperation, particularly within the context of the efforts to frame a new and more effective global post-2015 development agenda.