Project Aid and Firm Performance

Silvia Marchesi, Tania Masi () and Saumik Paul ()
Additional contact information
Tania Masi: University of Chieti Pescara
Saumik Paul: University of Manchester

No 14705, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper evaluates the effect of development project aid from the World Bank and China on firms' sales growth, using a large dataset of 110864 firms spanning 121 countries between 2001 and 2016. We find that, contrary to the World Bank, Chinese ODA projects increase, on average, firm sales and, compared to sector-specific, Chinese region-specific aid positively affect firm performance. Finally, we show that the positive effect of Chinese aid is stronger for firms lacking transport infrastructure (and with better electricity provision), suggesting that aid may improve firm performance by releasing their infrastructure constraints.

Keywords: chinese projects; world bank projects; aid effectiveness; geo-coding; firm growth (search for similar items in EconPapers)
JEL-codes: D22 F35 O19 (search for similar items in EconPapers)
Pages: 88 pages
Date: 2021-08
New Economics Papers: this item is included in nep-bec, nep-dev, nep-isf, nep-ppm and nep-sbm
References: View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published - published online as 'Aid Projects and Firm Performance' in: Economic Development and Cultural Change, 2024

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Working Paper: Project Aid and Firm Performance (2021)
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