The Effect of Venezuelan-Chinese Economic Relationship on Venezuela

This thesis examines the economic relationship between Venezuela and China, focusing on its impact on Venezuela's economy. It investigates the surge in trade and investment following Hugo Chávez's presidency, with China becoming Venezuela's second-largest trade partner and a major investor. The study analyzes the effects of Chinese lending on Venezuela's gross capital formation and GDP, using data from 1999 to 2015. It explores the implications of oil-based trade, debt, and the overall economic consequences. The research employs a mixed-methods approach, including data analysis and surveys, to assess the costs and benefits of the relationship. Findings suggest a significant influence of Chinese investment on Venezuela's GDP growth. The study also discusses the relationship to neoclassical growth theories and provides recommendations for future governmental actions.