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Natural resources and China’s foreign assistance in Africa: a two-sided story

Author

Listed:
  • West Togbetse

    (Université d’Orléans)

  • Camelia Turcu

Abstract

In the context of climate change, countries need natural resources for their development and energy transition process. A large share of these resources is based in emerging and developing countries. Within this framework, we investigate whether natural resources endowment has become a key determinant in the allocation of development aid. We put a specific focus on China, which has started to have a proactive role in international aid to other countries, although it is still an emerging economy. In particular, we analyze whether China is increasingly granting aid to countries well endowed with natural resources and if this official development assistance is motivated by economic interests, mainly those related to natural resources. To do so, we use two sets of data: an original database at the country level, covering the period 2000-2016, and geocoded data on 1650 Chinese development projects across 2969 physical locations in Africa over the period 1999-2013. We built thus our analysis at a macro and microeconomic level. Our results show that the aid granted by China can be linked to access to natural resources.

Suggested Citation

  • West Togbetse & Camelia Turcu, 2023. "Natural resources and China’s foreign assistance in Africa: a two-sided story," Working Papers 2023.16, International Network for Economic Research - INFER.
    • Handle: RePEc:inf:wpaper:2023.16
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    References listed on IDEAS

    as
    1. Axel Dreher & Andreas Fuchs, 2015. "Rogue aid? An empirical analysis of China's aid allocation," Canadian Journal of Economics, Canadian Economics Association, vol. 48(3), pages 988-1023, August.
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    3. Isaksson, Ann-Sofie & Kotsadam, Andreas, 2018. "Chinese aid and local corruption," Journal of Public Economics, Elsevier, vol. 159(C), pages 146-159.
    4. Cullen S. Hendrix & Marcus Noland, 2014. "Confronting the Curse: The Economics and Geopolitics of Natural Resource Governance," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 6765, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Foreign aid; natural resources; energy transition;
    All these keywords.

    JEL classification:

    • F - International Economics
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

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