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Chinese infrastructure lending in Africa and participation in global value chains

Author

Listed:
  • Vito Amendolagine

    (University of Foggia)

  • Andrea F. Presbitero

    (International Monetary Fund
    CEPR)

  • Roberta Rabellotti

    (University of Pavia
    University of Johannesburg)

Abstract

We explore the extent to which Chinese lending to African countries promotes participation in Global Value Chains (GVC). Using loan-level data on Chinese and World Bank lending to 37 African countries between 2000 and 2018 we find that in contrast to World Bank lending, Chinese lending is associated positively with an increased GVC participation. This association is driven by infrastructure lending, which is likely to reduce trade costs, making it easier to participate in GVCs. This increased GVC participation is persistent over time and concentrated on the downstream sectors and, thus, is likely to contribute to export and productivity growth.

Suggested Citation

  • Vito Amendolagine & Andrea F. Presbitero & Roberta Rabellotti, 2025. "Chinese infrastructure lending in Africa and participation in global value chains," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 161(1), pages 7-48, February.
    • Handle: RePEc:spr:weltar:v:161:y:2025:i:1:d:10.1007_s10290-024-00566-0
    DOI: 10.1007/s10290-024-00566-0
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    More about this item

    Keywords

    Chinese lending; Global value chains; Infrastructure; Africa;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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