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The Impact of China’s “Stadium Diplomacy” on Local Economic Development in Sub-Saharan Africa

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  • Lindlacher, Valentin
  • Pirich, Gustav

Abstract

This study investigates the economic impact of China’s “stadium diplomacy” in Sub-Saharan Africa. Exploiting the staggered timing of the construction in a difference-in-differences framework, we analyze the effect of Chinese-built and financed stadiums on local economic development. Employing nighttime light satellite data, we provide both an aggregate and spatially disaggregated assessment of these investments. We find that a stadium’s city nighttime light intensity increases by about 24 percent, on average, after stadium completion. The effects can be attributed to the stadiums but are not only visible close to the stadium’s location. Estimates on nighttime light activity are mirrored by individual-level employment effects in the stadiums’ surrounding area. For stadiums not built or financed by China, we cannot find similar effects. Our results contrast with the widely held notion that China’s development finance projects constitute “white elephants”.

Suggested Citation

  • Lindlacher, Valentin & Pirich, Gustav, 2025. "The Impact of China’s “Stadium Diplomacy” on Local Economic Development in Sub-Saharan Africa," World Development, Elsevier, vol. 185(C).
    • Handle: RePEc:eee:wdevel:v:185:y:2025:i:c:s0305750x24002353
    DOI: 10.1016/j.worlddev.2024.106765
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    More about this item

    Keywords

    Stadium diplomacy; Regional development; Nighttime light; Local public infrastructure; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
    • Z20 - Other Special Topics - - Sports Economics - - - General

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