2018
DOI: 10.1016/j.jpubeco.2018.01.002
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Chinese aid and local corruption

Abstract: Considering the mounting criticisms concerning Chinese aid practices, the present paper investigates whether Chinese aid projects fuel local-level corruption in Africa. To this end, we geographically match a new geo-referenced dataset on the subnational allocation of Chinese development finance projects to Chinese project sites. The effect, which lingers after the project implementation period, is seemingly not driven by an increase in economic activity, but rather seems to signify that the Chinese presence im… Show more

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Cited by 203 publications
(150 citation statements)
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“…Finally, some studies have focused on Chinese aid. Isaksson and Kotsadam (2016) find that perceptions of corruption are higher in the vicinity of Chinese aid projects,…”
Section: Our Approachmentioning
confidence: 82%
“…Finally, some studies have focused on Chinese aid. Isaksson and Kotsadam (2016) find that perceptions of corruption are higher in the vicinity of Chinese aid projects,…”
Section: Our Approachmentioning
confidence: 82%
“…Some observers consider it a new form of colonialism, noting frequent links between Chinese finance and commodity extraction as well as the use of Chinese labor and companies to build African infrastructure projects (Sanusi, 2013). Others have suggested that Chinese finance has negative political and social impacts, including links to corruption , Isaksson and Kotsadam, 2018and Brazys et al, 2017, dictatorial regimes (Kleine-Ahlbrandt and Small, 2008) and weakened social and environmental standards (Bosshard, 2008). In short, China's rising involvement in development finance is perceived by many as "rogue aid", to use Naim's oft-cited phrase (Naim 2009): undermining the activities of western-controlled development institutions and the rules for efficient development assistance jointly developed over many years.…”
Section: Figure 1 Cumulative Development Finance Commitments To Afrimentioning
confidence: 99%
“…8 The literature on China's official financing has, however, indicated that there is mixed support for the hypothesis that Beijing allocates projects to countries with low levels of institutional qualityi.e. undemocratic, politically unstable, and corrupt countries (see, for instance, Bräutigam 2011; Dreher and Fuchs 2015; Isaksson and Kotsadam 2018;Tull 2006).…”
Section: Institutional Qualitymentioning
confidence: 99%