The role of China's aid and ODI in the economic growth of African countries

Yan Dong () and Cijun Fan

Emerging Markets Review, 2020, vol. 44, issue C

Abstract: Has external capital, such as foreign aid and foreign direct investment (FDI), been able to help the economic growth in host countries? Our paper examines the effects of China's aid and its overseas direct investment (ODI) on economic growth in 47 African countries from 2003 to 2013. We find that China's aid has significant positive effects on African economic growth. However, China's ODI plays no major role in African countries' economic growth. In addition, the relationship between aid and growth varies according to the different categories of aid, and its marginal contribution is nonlinear.

Keywords: Economic growth; Aid; Overseas direct investment (ODI); Africa (search for similar items in EconPapers)
JEL-codes: F21 F35 O19 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:44:y:2020:i:c:s1566014119305205

DOI: 10.1016/j.ememar.2020.100713

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