Factor Endowments in a South- South Relation

China s new partnership with Africa has created one
of the most interesting South- South relationships.
Through its growing demand for natural resources,
China has turned into one of the largest investors in
Africa; some patterns indicate a vested North- South
relation with China in the role of the USA. The
different endowments of the regions lead to different
outcomes, most notably in migration and inequality.
The labour abundance of China in combination with its
capital abundance in relation to Africa creates a
pattern of migration of unskilled labour which is
relatively unprecedented in this form. This on the
other hand has also effects on unskilled labour in
Africa. As for inequality, trade based on different
endowments benefits different parts of the society.
Only because of being labour abundant, China could
achieve a significant reduction of poverty through
openness to investment and trade. Africa is in a
different position. The continent s land abundance
benefits mainly the land owning elite with further
implications for trade preferences or migration.

Autorentext

geb. 1984. Graz, Österreich
2002-2006: Informations Design. FH Joanneum Graz
2004: Erasmus Studium. Kymenlaakson Ammattikorkeakoulu: Kouvola, Finland
2005: Intern. True North Film Produktion: Reykjavik, Iceland
2006-2007: Chinesisch Studium. Qiqihaer University, China
2007-2008: Development Management. London School of Economics: London, UK

Klappentext

China's new partnership with Africa has created one
of the most interesting South- South relationships.
Through its growing demand for natural resources,
China has turned into one of the largest investors in
Africa; some patterns indicate a vested North- South
relation with China in the role of the USA. The
different endowments of the regions lead to different
outcomes, most notably in migration and inequality.
The labour abundance of China in combination with its
capital abundance in relation to Africa creates a
pattern of migration of unskilled labour which is
relatively unprecedented in this form. This on the
other hand has also effects on unskilled labour in
Africa. As for inequality, trade based on different
endowments benefits different parts of the society.
Only because of being labour abundant, China could
achieve a significant reduction of poverty through
openness to investment and trade. Africa is in a
different position. The continent's land abundance
benefits mainly the land owning elite with further
implications for trade preferences or migration.