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Working Paper 128 - China’s Manufacturing and Industrialization in Africa
China, as well as several other Asian economies, has achieved spectacular growth rates through opening markets to facilitate sensible price signals, operating trade and exchange rate policies that favour exports over imports in at least the initial stages, providing a sound incentives framework for investment, and developing large-scale physical infrastructure. These policies have fostered dynamic gains from increased production and export of manufactures. In Africa, by contrast, the acceleration of growth from 2001 until the global recession was based on higher primary commodity prices, while diversification into manufactures production has been limited.