US and China Aid to Africa: Impact on the Donor-Recipient Trade Relations

Liu, Ailan; Tang, Bo

doi:10.2139/ssrn.2804209

Cited by 7 publications

(2 citation statements)

References 42 publications

(68 reference statements)

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“…This study uses gravity models to investigate the dynamics and the features of Chinese moves into Africa, looking simultaneously at the three channels that shape the relationship—trade, FDI and aid—finding direct links between them: Chinese co‐operation projects in a particular country increase China's FDI to that country, while previous Chinese FDI increases trade with that country and vice versa. Liu and Tang () also find that Chinese aid has positive effects on its imports and exports to African countries. They compare US and Chinese aid to African countries and show that, while exports are positively linked to aid flows in both cases, imports from African countries relate positively only to Chinese aid.…”

Section: China's Involvement In Africa: Nature and Causesmentioning

confidence: 93%

“…This is a matter of contention with western donors, which see this practice as opportunistic and providing an unfair advantage to Chinese firms (Brautigam, ). However, linking aid and trade has long been practised by western donors and does not seem to be a Chinese‐specific pattern (Liu & Tang, ). This approach is quite attractive to China as it allows it to deploy its aid potential while at the same time maximizing the involvement of domestic firms and securing access to natural resources.…”

Section: China's Involvement In Africa: Nature and Causesmentioning

confidence: 99%

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The economics of China's engagement with Africa: What is the empirical evidence?

Martuscelli

2019

Development Policy Review

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Motivation In the last decade, economic and political ties between China and African countries grew fast, fuelling a heated debate about the implications for the latter and for the global system of China's engagement in Africa. Purpose The article reviews the existing evidence on the nature, causes and impact of China's economic engagement in Africa. Approach and methods The review focuses mainly on the economic literature with a quantitative focus. Findings China's reasons to engage with Africa are not so different from those of western countries: securing natural resources and seeking new export markets. However, there is evidence that China is less interested in the quality of governance and institutions of its African partners. The literature tends to agree on the positive growth effects for African countries of Chinese interest, but also suggests that their already thin manufacturing sector could be adversely affected by Chinese competition and that the increasing natural resource specialization of African countries might hamper diversification, structural transformation and future growth prospects. At the same time Chinese investments are building valuable infrastructure and linkages with local firms, which are growing although still very limited. The emergent trend of increasing presence of small and medium Chinese firms in Africa is promising in this respect. Policy implications Increased Chinese interactions with African countries present opportunities as well as threats for African countries. A key aspect will be the capacity of Chinese presence in Africa to spread to the local economy through spillover effects and linkages to the domestic economy. Both sides should introduce policies aimed at strengthening these linkages and spillovers.

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Section: China's Involvement In Africa: Nature and Causesmentioning

confidence: 93%

Section: China's Involvement In Africa: Nature and Causesmentioning

confidence: 99%

The economics of China's engagement with Africa: What is the empirical evidence?

Martuscelli

2019

Development Policy Review

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Foreign Aid and Recipient Countries’ Participation in Global Value Chains: A Comparative Study Based on Chinese and U.S. Aid

Xu,

Liu,

Sun

2024

Open Econ Rev

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Country selection and aid allocation: A case of the Czech Republic

Dufková

2021

SHS Web Conf.

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Research background: Donors provide development aid from various reasons: while some of them might give aid based on the recipient´s needs, some countries pursue their own agendas with their development programmes. Visegrad Group countries are mostly considered as egoistic donors that try to support security in the East European region and promote their trade. Purpose of the article: This article draws back on the existing literature that focused on the motives behind the Czech development aid and examines influence of both egoistic and altruistic variables to determine which of these variables are important for the selection of countries to the aid portfolio and the allocation of aid funds. The researched variables are: number of asylum seekers, debt to the Czech Republic, Czech exports, unemployment in the developing countries, political and civil rights, and enrolment to the secondary education. Methods: Probit-tobit analysis and a generalized linear model are employed in this paper. Findings & Value added: The results suggest that egoistic economic motives (debt and Czech exports) are important factors for both country selection and aid allocation, while the number of asylum seekers affects only the aid allocation. As per the altruistic reasons, the country selection depends on the unemployment rates, political and civil rights and the enrolment to secondary education. The aid allocation depends also on the unemployment rates, political and civil rights, and the ratio of girls enrolled to the secondary education.

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US and China Aid to Africa: Impact on the Donor-Recipient Trade Relations

Cited by 7 publications

References 42 publications

The economics of China's engagement with Africa: What is the empirical evidence?

The economics of China's engagement with Africa: What is the empirical evidence?

Foreign Aid and Recipient Countries’ Participation in Global Value Chains: A Comparative Study Based on Chinese and U.S. Aid

Country selection and aid allocation: A case of the Czech Republic

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