Infrastructure and poverty reduction: Assessing the dynamic impact of Chinese infrastructure investment in sub-Saharan Africa

Liyunpeng Zhang, Yuhang Zhuang, Yibing Ding and Ziwei Liu

Journal of Asian Economics, 2023, vol. 84, issue C

Abstract: Infrastructure investment is essential for African countries to enhance economic activities and reduce poverty; however, the conclusions from national-level studies remain ambiguous. Combining geo-coded Chinese infrastructure project data from 2000 to 2014 and Demographic and Health Surveys information, we employ a spatiotemporal estimation strategy and explore the dynamic effectiveness of Chinese infrastructure investment on local multidimensional poverty in sub-Saharan Africa and its mechanisms. Our findings demonstrate that infrastructure projects can continuously alleviate local multidimensional poverty following project completion, primarily by improving living standards through local industrialization and increasing individual employment stability. Further investigating heterogeneities, we determine that Chinese infrastructure projects are more effective for self-dependent recipients, in rural areas, and when overseen by state-owned enterprises. Our findings provide insights into the long-term effectiveness for underdeveloped countries to reduce local poverty with Chinese infrastructure investment.

Keywords: Chinese infrastructure investment; Sub-Saharan Africa; Multidimensional poverty; Spatial-temporal estimation (search for similar items in EconPapers)
JEL-codes: F35 I3 O18 O55 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:84:y:2023:i:c:s1049007822001294

DOI: 10.1016/j.asieco.2022.101573

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