Connective Financing - Chinese Infrastructure Projects and the Diffusion of Economic Activity in Developing Countries

Richard Bluhm, Axel Dreher, Andreas Fuchs, Bradley C. Parks, Austin M. Strange and Michael J. Tierney

No 8344, CESifo Working Paper Series from CESifo

Abstract: This paper studies the causal effect of transport infrastructure on the spatial distribution of economic activity within subnational regions in a large number of developing countries. To do so, we introduce a new global dataset of geolocated Chinese development finance projects over the period from 2000 to 2014 and combine it with measures of spatial concentration based on remotely-sensed data. We find that Chinese-financed transportation projects reduce spatial concentration within regions. Transport projects decentralize economic activity particularly strongly in regions that are more urbanized, located closer to a city, and less developed. .

Keywords: development finance; transport costs; infrastructure; foreign aid; spatial concentration; China (search for similar items in EconPapers)
JEL-codes: F35 O18 O19 P33 R11 R12 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-cna, nep-dev, nep-geo, nep-ppm, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (35)

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Related works:
Journal Article: Connective financing: Chinese infrastructure projects and the diffusion of economic activity in developing countries (2025)
Working Paper: Connective Financing: Chinese Infrastructure Projects and the Diffusion of Economic Activity in Developing Countries (2020)
Working Paper: Connective Financing - Chinese Infrastructure Projects and the Diffusion of Economic Activity in Developing Countries (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_8344

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