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Does The one who pays the piper really call the tune? OECD and Chinese aid to infrastructure in Sub-Saharan Africa

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  • Daniele Pianeselli

Abstract

This paper studies the role of donors’ interests, as opposed to recipient needs and merits, in the allocation of infrastructure aid to Sub-Saharan Africa, comparing OECD-DAC donors and China. The empirical analysis, over the period 2000-2012, clearly suggests that the main determinants that dictate aid flows differ between them. There is statistically significant evidence that, ceteris paribus, China has allocated aid according to political affinity, and natural resources endowment. However civil liberties and democracy have a significant role in screening aid allocation and Chinese interests reduced their effect during the last four years of analysis. On the other hand, donors’ interests did not generally have any role for OECD countries. Still, the evidence of a selective approach towards good economic and political governance, as well as recipients’ needs by these donors, is mixed and varies significantly among countries.

Suggested Citation

  • Daniele Pianeselli, 2016. "Does The one who pays the piper really call the tune? OECD and Chinese aid to infrastructure in Sub-Saharan Africa," Departmental Working Papers of Economics - University 'Roma Tre' 0204, Department of Economics - University Roma Tre.
    • Handle: RePEc:rtr:wpaper:0204
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    More about this item

    Keywords

    foreign aid; aid allocation; infrastructures; China; emerging donors; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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