Does China’s aid increase individual happiness of recipient countries?

Jinqiang Xu () and Churen Sun ()
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Jinqiang Xu: Nanjing University of Finance and Economics
Churen Sun: Guangdong University of Foreign Studies

Empirical Economics, 2024, vol. 66, issue 6, No 13, 2793 pages

Abstract: Abstract This paper utilizes an instrumental variables approach to explore the influence of China's aid on the happiness of individuals in recipient countries. The results indicate that China's aid contributes significantly to the happiness of individuals in these countries. Through mechanism analysis, we identify two primary channels: the enhancement of the recipient's infrastructure and the elevation of their income levels. Individual-level heterogeneity analyses highlight a more pronounced effect of China's aid on those possessing advanced education and elevated social status. Country-level analyses further suggest that China's aid has a stronger positive correlation with happiness in countries with more advanced economic structures and superior living standards.

Keywords: China's aid; Individual happiness; Infrastructure; Income; EMEC-D-23-00432 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s00181-023-02537-0

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