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Abstract

This paper reviews recent research and related studies on the ongoing competition between Chinese and local entrepreneurs in the lower rungs of Africa’s business sector. Several studies have noted that since entry, Chinese firms have been able to undercut African entrepreneurs, thanks to superior networks and better financing. However, other findings portray more positive impacts of Chinese presence, including higher employment and tax revenues, and better supply of goods and services. It is possible to surmise that this jostling for space in Africa’s business periphery will not last. Ultimately, it must yield to changes in the host countries’ political economy and market environments.

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