 Does Horizontal‐Paradigm Aid Weaken the Governance of Recipient Countries? Evidence from ChinaLuhao Liu, Xudong Hu and Zhongxiu Zhao China & World Economy, 2022, vol. 30, issue 2, 1-27 Abstract: China's aid has always been an interesting topic in the field of development economics, and the effectiveness of aid is also a controversial subject in the literature. This paper explores the relationship between China's aid and the governance of its recipient countries from 2000 to 2014. We found that, compared with the “vertical paradigm” of traditional donors, China's “horizontal paradigm” has unique features, promoting the governance of recipient countries. We employed a cross‐sectional estimation and panel analysis with several regression methods. While our cross‐sectional findings did not yield robust evidence to support a relationship between Chinese aid and its recipients' governance, our panel data regressions found a significant and positive relationship. The results were robust in a dynamic panel, even after correcting for endogeneity. Thus, China's aid has a positive influence on governance with the inclusion of time series. The relationship was found to vary according to aid types. Date: 2022 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:chinae:v:30:y:2022:i:2:p:1-27 Ordering information: This journal article can be ordered from Access Statistics for this article China & World Economy is currently edited by Yongding Yu More articles in China & World Economy from Institute of World Economics and Politics, Chinese Academy of Social Sciences Contact information at EDIRC. |
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