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Selected for support under the PAGE initiative in 2013, a team of local researchers in the Central African Republic (CAR) aims to assess the economic impact of Chinese investments in various sectors of the cotton industry. Their findings show that such investments lead to an increase in production, which reduces sale prices, but without being paired with a matching increase in demand. According to the simulations’ results, the Chinese investment strategy must be oriented towards the textile industry, in order to create a downstream market for the cotton sector’s outputs and be most effective in terms of positive effects on the national economy. Indeed, the results show that the Chinese intervention and FDI in CAR contributes to improving the well-being of all economic agents, through a rise in real GDP and improvement of household standard living conditions. Find out more about the research methods, findings and ensued policy recommendations through the following PEP publications (in French):

Central African Republic
Project code: 



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