Chinese Investment, Technology Spillovers, and Economic Growth in the Democratic Republic of Congo

Abstract

This study investigates the nature and effect of technological spillovers from Chinese overseas investments towards the economic development of the Democratic Republic of Congo (DRC). We focus on technology transfer and analyze it along short-term technological diffusion and long-term technological growth. We aim to identify and analyze potential challenges and risks of technology spillovers associated with economic dependence, environmental social impact, and governance issues, as well as demonstrate the quantitative impact of the investment rate policy of Chinese investments on economic growth and technology spillovers. To model the short-term technological diffusion, we examine the insurance policy in productivity, job creation and improved living standards in DRC from 2005 to 2023. To model the long-term technological growth, we identify high and low potential sectors of investment and formulate optimal investment strategies. The insights of this study lead to a new institutional economic policy that boosts the economic growth of DRC and capitalizes on China’s foreign direct investments.

 Keywords Technology Spillovers, Economic Growth, Chinese FDI, Policies, Democratic Republic of Congo