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This is a Quantitative Study study.

Do Foreign Investments Promote Export Diversification in a Host Country? Evidence From China's Investment in Africa

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Analysis finds no significant effect of Chinese investments on export diversification in Africa, suggesting that absorptive capacities are vital.

Chinese investments have not significantly influenced the export diversification of African countries, despite their expansion.
The analysis involved 34 African nations from 2003 to 2019 using the instrumental variables estimation technique.
Countries' absorptive capacities, including investment and financial development, were crucial for influencing export diversification.
Heterogeneity exists in the impact of these variables based on the level of Chinese investment received by each country.

Aliyu Buhari Isah (2025) studied this question.

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Analysis finds no significant effect of Chinese investments on export diversification in Africa, suggesting that absorptive capacities are vital.