The driving factors of Chinese aid allocation to African countries

We investigate the driving factors of Chinese aid allocation to 44 African countries for the periods 2003–2017. The Poisson pseudo-maximum likelihood (PPML) procedure is applied to estimate the gravity model of aid and loan allocation as it can solve zero-valued observations and heterogeneity proble...

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Autores principales:	Jiang Yushi, Dinkneh Gebre Borojo, Miao Miao, Xiaoyun Zhang
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2020
Materias:	aid allocation poisson pseudo-maximum likelihood (ppml) gravity model african countries china Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/00bd380d99774d5fbea748510caf9fc4
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id	oai:doaj.org-article:00bd380d99774d5fbea748510caf9fc4
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spelling	oai:doaj.org-article:00bd380d99774d5fbea748510caf9fc42021-12-02T15:59:51ZThe driving factors of Chinese aid allocation to African countries2331-197510.1080/23311975.2020.1812219https://doaj.org/article/00bd380d99774d5fbea748510caf9fc42020-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2020.1812219https://doaj.org/toc/2331-1975We investigate the driving factors of Chinese aid allocation to 44 African countries for the periods 2003–2017. The Poisson pseudo-maximum likelihood (PPML) procedure is applied to estimate the gravity model of aid and loan allocation as it can solve zero-valued observations and heterogeneity problems prevalent in the panel data set. An aggregate indicator is derived for the quality of governance using principal component analysis. We controlled for aggregate Chinese aid and loans separately because a significant share of aid allocation China commits to African countries is repayable long-term loans. Controlling for source and destination countries’ motives of aid and loan allocation, our findings provide evidence that Chinese aid and loan flow to African countries is significantly determined by African countries’ and China’s strategic, economic and commercial factors. The results further examine the importance of China-Africa trade and Chinese FDI, China’s international support and foreign policy considerations in China’s aid and loan allocation policy to African countries. Additionally, it gives a detailed analysis of the aid-institution paradox.Jiang YushiDinkneh Gebre BorojoMiao MiaoXiaoyun ZhangTaylor & Francis Grouparticleaid allocationpoisson pseudo-maximum likelihood (ppml)gravity modelafrican countrieschinaBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 7, Iss 1 (2020)
institution	DOAJ
collection	DOAJ
language	EN
topic	aid allocation poisson pseudo-maximum likelihood (ppml) gravity model african countries china Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	aid allocation poisson pseudo-maximum likelihood (ppml) gravity model african countries china Business HF5001-6182 Management. Industrial management HD28-70 Jiang Yushi Dinkneh Gebre Borojo Miao Miao Xiaoyun Zhang The driving factors of Chinese aid allocation to African countries
description	We investigate the driving factors of Chinese aid allocation to 44 African countries for the periods 2003–2017. The Poisson pseudo-maximum likelihood (PPML) procedure is applied to estimate the gravity model of aid and loan allocation as it can solve zero-valued observations and heterogeneity problems prevalent in the panel data set. An aggregate indicator is derived for the quality of governance using principal component analysis. We controlled for aggregate Chinese aid and loans separately because a significant share of aid allocation China commits to African countries is repayable long-term loans. Controlling for source and destination countries’ motives of aid and loan allocation, our findings provide evidence that Chinese aid and loan flow to African countries is significantly determined by African countries’ and China’s strategic, economic and commercial factors. The results further examine the importance of China-Africa trade and Chinese FDI, China’s international support and foreign policy considerations in China’s aid and loan allocation policy to African countries. Additionally, it gives a detailed analysis of the aid-institution paradox.
format	article
author	Jiang Yushi Dinkneh Gebre Borojo Miao Miao Xiaoyun Zhang
author_facet	Jiang Yushi Dinkneh Gebre Borojo Miao Miao Xiaoyun Zhang
author_sort	Jiang Yushi
title	The driving factors of Chinese aid allocation to African countries
title_short	The driving factors of Chinese aid allocation to African countries
title_full	The driving factors of Chinese aid allocation to African countries
title_fullStr	The driving factors of Chinese aid allocation to African countries
title_full_unstemmed	The driving factors of Chinese aid allocation to African countries
title_sort	driving factors of chinese aid allocation to african countries
publisher	Taylor & Francis Group
publishDate	2020
url	https://doaj.org/article/00bd380d99774d5fbea748510caf9fc4
work_keys_str_mv	AT jiangyushi thedrivingfactorsofchineseaidallocationtoafricancountries AT dinknehgebreborojo thedrivingfactorsofchineseaidallocationtoafricancountries AT miaomiao thedrivingfactorsofchineseaidallocationtoafricancountries AT xiaoyunzhang thedrivingfactorsofchineseaidallocationtoafricancountries AT jiangyushi drivingfactorsofchineseaidallocationtoafricancountries AT dinknehgebreborojo drivingfactorsofchineseaidallocationtoafricancountries AT miaomiao drivingfactorsofchineseaidallocationtoafricancountries AT xiaoyunzhang drivingfactorsofchineseaidallocationtoafricancountries
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The driving factors of Chinese aid allocation to African countries

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