Aid, China, and Growth: Evidence from a New Global Development Finance Dataset
American Economic Journal: Economic Policy
vol. 13,
no. 2, May 2021
(pp. 135-74)
Abstract
This article introduces a new dataset of official financing from China to 138 developing countries between 2000 and 2014. It investigates whether Chinese development finance affects economic growth in recipient countries. The results demonstrate that Chinese development finance boosts short-term economic growth. An additional project increases growth by between 0.41 and 1.49 percentage points 2 years after commitment, on average. While this study does not find that significant financial support from China impairs the overall effectiveness of aid from Western donors, aid from the United States tends to be more effective in countries that receive no substantial support from China.Citation
Dreher, Axel, Andreas Fuchs, Bradley Parks, Austin Strange, and Michael J. Tierney. 2021. "Aid, China, and Growth: Evidence from a New Global Development Finance Dataset." American Economic Journal: Economic Policy, 13 (2): 135-74. DOI: 10.1257/pol.20180631Additional Materials
JEL Classification
- F35 Foreign Aid
- O19 International Linkages to Development; Role of International Organizations
- O47 Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- P33 Socialist Institutions and Their Transitions: International Trade, Finance, Investment, Relations, and Aid
- P34 Socialist Institutions and Their Transitions: Financial Economics
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