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China has recently emerged as the leading source of technology (capital goods) for Kenya and sub-Saharan Africa as a whole, a region which before the 1990s depended largely on advanced countries for its capital goods. With data from Kenya's furniture industry, this study explored the development implications of the new phenomenon for developing countries. The findings show that the technologies from China (and also from Kenya) are more amenable for inclusive industrial development in low-income settings where unemployment is high, financial markets are rigid and inaccessible, product markets...