Mean Category for Number of Competitors in Domestic Market, by

208
AFRICA
’
S SILK ROAD
:
CHINA AND INDIA
’
S NEW ECONOMIC FRONTIER
involvement with Chinese and Indian capital, while the African markets where Chinese and Indian investors are most prevalent tend to be the most competitive. As shown in chapter 6, the WBAATI survey data suggest that Chinese and Indian investment, relative to European investment in
Africa, tends to take the form of de novo greenfield investment rather than acquisition of existing national firms or joint ventures with national firms.
In this regard, Chinese and Indian investments have a salutary effect on behind-the-border competition in Africa.
There is also a two-way relationship between import competition from
China and India and firms export performance. Based on the survey data,
FIGURE 4.16
Numbers of Domestic Competitors and Import Competitors from China and
India by Nationality of Firm Owners
0 1
2 3
4 5
African
Chinese
Indian
European
African
Chinese
Indian
European
African
Chinese
Indian
European
African
Chinese
Indian
European
African
Chinese
Indian
European
African
Chinese
Indian
European
African
Chinese
Indian
European
African
Chinese
Indian
European local competitors import competitors in China import competitors in India

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