RETRACTED: “Teach People How to Fish”: The Impact of Chinese Aid on Human Capital in Kenya

Zhang Hong, Xu Helian and Deng Yuping

Review of Development Economics, 2026, vol. 30, issue 3, E1-E14

Abstract: This study examines the influence of Chinese aid on human capital in Kenya, exploring the underlying mechanisms through a combination of Chinese development project data and information obtained from Demographic and Health Surveys. Employing the “candidate list control design” method, we ascertain that Chinese aid positively affects local human capital through three distinct channels: by enhancing local employment opportunities, reducing instances of conflict, and stimulating regional economic growth. Through a sectoral analysis, we discover that households residing in close proximity to productive aid projects and economic infrastructure aid projects experience significant improvements in their human capital levels. Furthermore, we find that both official development assistance (ODA) and vaguely defined official finance contribute positively and significantly to the enhancement of human capital. Moreover, a supplementary analysis indicates that Chinese aid programs have a substantial and noteworthy impact on Kenya's health human capital, surpassing the effects of aid programs initiated by the World Bank.

Date: 2026
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