Infrastructure as an Internationally Tradable Good: The African–Chinese Nexus

Abstract

As a government-supplied public good, infrastructure facilitates economic development by promoting marketization. Despite an infrastructure deficit in African countries, some governments lack the necessary finance and/or political will to provide this public good. Africa's demand for infrastructure forms the basis to trade with resource-deficient China. This relieves Africa from dependence on the "aid-fatigued" West, and expands the market for Chinese goods and services. Expediency of Chinese policy may indirectly affect development of indigenous governance and firms. Nonetheless, such trade provides sovereign African states an alternative to conditional aid, and can be accepted or rejected with free will.

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