Capital mobility and knowledge diffusion from China into Ghana’s agricultural sector

Abstract

China’s presence in Africa’s development process represents new configurations in international relationships expressed in capital mobility and knowledge diffusion. (CMKD) This study sought to interrogate Chinese capital mobility and knowledge diffusion into Ghana’s agricultural sector in terms of forms, trends, interpretations, adaptations as well as economic and political outcomes. The study was largely exploratory and descriptive employing mixed methods drawn from both primary and secondary sources using purposive sampling technique. Guided by political economy theories, the study revealed increasing patterns of importation of Chinese equipment with noticeable investments in the industrial fish trawling industry, albeit an observably low level of investments in the poultry and landed investments. These patterns are understood not within orthodox political economy contexts alone but also within social innovation contexts. The study also revealed varied interpretations and modes of cultural adaptations which are useful for policy formulation. The economic outcomes of Chinese CMKD were revealed as promising with threatening challenges. The political outcomes were riddled with traces of appreciable institutional responses but with exhibits of political inertia reducing Ghana’s opportunity to benefit from China’s CMKD. The study concluded that CMKD may produce development or underdevelopment in host countries. However, the occurrence of either of these developmental effects largely depends on institutional support and regulatory policies coupled with the interpretations and the behaviours people attach to the CMKD. It then recommended strong state activism which will alter the Chinese CMKD into opportunities for agricultural development.