Is favoritism a threat to Chinese aid effectiveness? A subnational analysis of Chinese development projects

Item Type Journal paper
Abstract Chinese aid comes with few strings attached, allowing recipient country leaders to use it for domestic political purposes. The vulnerability of Chinese aid to political capture has prompted speculation that it may be economically ineffective, or even harmful. We test these claims by estimating the effect of Chinese aid on subnational economic development—as measured by per-capita nighttime light emissions—and whether this effect is different at times a jurisdiction is favored politically. Contrary to the conventional wisdom, we do not find that the local receipt of Chinese aid undermines economic development outcomes at either the district level or provincial level. Nor does political favoritism in the allocation of Chinese aid towards the home regions of recipient country leaders reduce its effectiveness. Our results—from 709 provinces and 5,835 districts within 47 African countries between 2001 and 2012—demonstrate that Chinese aid improves local development outcomes, regardless of whether such aid is given to jurisdictions at times they are the birth region of the country’s leader.
Authors Dreher, Axel; Fuchs, Andreas; Hodler, Roland; Raschky, Paul; Parks, Bradley & Tierney, Michael
Journal or Publication Title World Development
Language English
Subjects economics
political science
HSG Classification contribution to scientific community
HSG Profile Area SEPS - Economic Policy
Refereed Yes
Date March 2021
Publisher Elsevier Science
Volume 139
Number 105291
Number of Pages 12
ISSN 0305-750X
Depositing User Prof. Dr. Roland Hodler
Date Deposited 20 Jul 2021 12:49
Last Modified 09 Dec 2022 01:26
URI: https://www.alexandria.unisg.ch/publications/263529

Download

Full text not available from this repository.

Citation

Dreher, Axel; Fuchs, Andreas; Hodler, Roland; Raschky, Paul; Parks, Bradley & Tierney, Michael (2021) Is favoritism a threat to Chinese aid effectiveness? A subnational analysis of Chinese development projects. World Development, 139 (105291). ISSN 0305-750X

Statistics

https://www.alexandria.unisg.ch/id/eprint/263529
Edit item Edit item
Feedback?