EconPapers    
Economics at your fingertips  
 

Does Horizontal‐Paradigm Aid Weaken the Governance of Recipient Countries? Evidence from China

Luhao 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
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/cwe.12408

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

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
http://www.blackwell ... bs.asp?ref=1671-2234

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.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2022-07-02
Handle: RePEc:bla:chinae:v:30:y:2022:i:2:p:1-27