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Rogue aid? An empirical analysis of China's aid allocation

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  • Axel Dreher
  • Andreas Fuchs

Abstract

Foreign aid from China is often characterized as “rogue aid” that is guided by selfish interests alone. We collect data on Chinese project aid, food aid, medical staff and total aid money to developing countries, covering the 1956–2006 period, to empirically test to what extent self‐interests shape China's aid allocation. While political considerations shape China's allocation of aid, China does not pay substantially more attention to politics compared to Western donors. What is more, China's aid allocation seems to be widely independent of recipients' endowment with natural resources and institutional characteristics. Overall, denoting Chinese aid as “rogue aid” seems unjustified. Aide canaille? Une analyse empirique de l'allocation de l'aide étrangère de la Chine. L'aide étrangère de la Chine est souvent caractérisée comme une ≪ aide canaille ≫ guidée par les seuls intérêts du donneur. On a collecté des données sur l'aide de la Chine pour des projets, de la nourriture, du personnel médical, ainsi que l'aide monétaire totale aux pays en développement pour la période 1956–2006, afin de tester empiriquement jusqu'à quel point les intérêts égoïstes de la Chine ont conformé l'aide de la Chine. Bien que des considérations politiques conforment l'allocation de l'aide de la Chine, la Chine ne porte pas une attention substantiellement plus grande aux considérations politiques que les donateurs de l'Ouest. De plus, l'allocation de l'aide de la Chine semble grandement indépendante de la dotation en facteurs ou des caractéristiques institutionnelles des pays récipiendaires. En gros, caractériser l'aide de la Chine comme ≪ aide canaille ≫ semble injustifié.

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  • Axel Dreher & Andreas Fuchs, 2015. "Rogue aid? An empirical analysis of China's aid allocation," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(3), pages 988-1023, August.
    • Handle: RePEc:wly:canjec:v:48:y:2015:i:3:p:988-1023
    DOI: 10.1111/caje.12166
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    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid

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