Do China's Loans Associate With Economic Growth in Africa?

Philip Hans Franses

Review of Development Economics, 2025, vol. 29, issue 4, 2706-2709

Abstract: This paper considers various econometric models to estimate the potential link between Chinese loans to African countries and economic growth measured by growth in real Gross Domestic Product (GDP). The overall conclusion is that the association of loans with economic growth in Africa is small and heterogeneous. For some countries, like Eritrea, the associations are positive and large, but for others like Chad and Rwanda, the associations are large and negative. For most countries, we cannot conclude that countries which receive Chinese loans grow faster.

Date: 2025
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