AidData Working Paper

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

Date Published

Sep 11, 2018

Authors

Richard Bluhm, Axel Dreher, Andreas Fuchs, Bradley Parks, Austin Strange, Michael Tierney

Publisher

Citation

Richard Bluhm, Axel Dreher, Andreas Fuchs, Bradley Parks, Austin Strange, Michael Tierney. Connective Financing: Chinese Infrastructure Projects and the Diffusion of Economic Activity in Developing Countries. AidData Working Paper #64. Williamsburg, VA: AidData at William & Mary.

AidData Working Paper

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

Date Published

Sep 11, 2018

Authors

Richard Bluhm, Axel Dreher, Andreas Fuchs, Bradley Parks, Austin Strange, Michael Tierney

Citation

Richard Bluhm, Axel Dreher, Andreas Fuchs, Bradley Parks, Austin Strange, Michael Tierney. Connective Financing: Chinese Infrastructure Projects and the Diffusion of Economic Activity in Developing Countries. AidData Working Paper #64. Williamsburg, VA: AidData at William & Mary.

How do development projects influence the geographic distribution of economic activity within low-income and middle-income countries? Existing research focuses on the effects of Western development projects on inter-personal inequality and inequality across different subnational regions. However, China has recently become a major financier of economic infrastructure in Africa, Asia, Latin America, the Middle East, and Central and Eastern Europe, and it is unclear if these investments diffuse or concentrate economic activity. We introduce an original dataset of geo-located Chinese Government-financed projects in 138 countries between 2000 and 2014, and analyze the effects of these projects on the spatial distribution of economic activity within host countries. We find that Chinese development projects in general, and Chinese transportation projects in particular, reduce economic inequality within and between subnational localities. Our results suggest that Chinese investments in “connective infrastructure” produce positive economic spillovers that lead to a more equal distribution of economic activity in the localities where they are implemented.

Tags
Available on GeoQuery
TUFF
Geocoded
SDG Coded
Natural Resource Concessions
Survey Results
Metadata
Publication Date
Sep 2018
Starting Year:
2000
Ending Year:
2014
Number of Entries:
6,190
File Size:

This dataset geolocates Chinese official finance projects committed or implemented from 2000-2014 to capture 3,485 projects totaling $273.6 billion. The data includes both Chinese aid and non-concessional official financing.

Tags
Available on GeoQuery
TUFF
Geocoded
SDG Coded
Natural Resource Concessions
Survey Results
Metadata
Publication Date
Oct 2017
Starting Year:
2000
Ending Year:
2014
Number of Entries:
File Size:

AidData's Global Chinese Official Finance Dataset (Version 1.0) tracks the known universe of overseas Chinese official finance between 2000-2014, capturing 4,373 records totaling $354.4 billion. The data includes both Chinese aid and non-concessional official financing.