Open Access
Article
SciPap-2354
Assessing the Moderating Effect of Natural Resource Rent on China Foreign Direct Investment on Economic Growth in Africa
1 Faculty of Management and Economics, Department of Economics, Tomas Bata University in Zlín, Mostní 5139, Zlín 760 01, Czechia
2 Faculty of Mining, Ecology, Process Control and Geotechnology, Institute of Control and Informatization of Production Processes, Technical University of Košice, B. Němcovej 3, Košice 042 00, Slovakia
3 Faculty of Management and Economics, Department of Economics, Tomas Bata University in Zlín, Mostní 5139, Zlín 760 01, Czechia
4 Faculty of Management and Economics, Department of Finance and Accounting, Tomas Bata University in Zlín, Mostní 5139, Zlín 760 01, Czechia
5 Faculty of Management and Economics, Department of Business Administration, Tomas Bata University in Zlín, Mostní 5139, Zlín 760 01, Czechia
* Authors to whom correspondence should be addressed.
Abstract: In advancing sustainable economic growth, the affiliation between foreign direct investment and economic growth (EGR) has become increasingly prominent given the dual emphasis on attainment of sustainability development goals. The research evaluated the affiliation between China foreign direct investment inflow (CFDI) and EGR in Africa. The research consists of 36 African regions for the period 2003-2023. The econometric model of Common Correlated Effect Mean Group, Driscoll and Kraay standard Errors, and Fully modified ordinary least square was employed to assess the affiliation between the variables and the direction of affiliation through the Durmitrus Hurlin causality test. The findings indicated that China foreign investment inflow, human capital (HMC), and technological innovation (TINN) had a significant positive effect on EGR. However, trade openness (TRAD) and total natural resources rent (TNRR) had an inverse impact on EGR. Furthermore, total natural resource rents had a positive moderating influence on the affiliation between CFDI and EGR. The current research provide governments and institutions to develop policies on China FDI inflow and natural resources to promote economic growth in Africa. By having bilateral cooperation, factors such as human capital, technological innovation, and trade openness will upsurge in the future.
Keywords: Economic Growth, Foreign Direct Investment, Africa, Natural Resource Rent, China.
JEL classification: C33 - Panel Data Models • Spatio-temporal Models, F21 - International Investment • Long-Term Capital Movements, F23 - Multinational Firms • International Business, F35 - Foreign Aid, O55 - Africa
Received: 3 August 2025 / Revised: 29 October 2025 / Accepted: 30 October 2025 / Published: 2 December 2025
