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China and the World Bank - How Contrasting Development Approaches affect the Stability of African States

Author

Listed:
  • Kai Gehring

    (University of Zurich, CESifo)

  • Lennart Kaplan

    (German Development Institute)

  • Melvin H.L. Wong

    (Leibniz University Hannover)

Abstract
China’s development model challenges the approaches of traditional Western donors like the World Bank. We argue that both aim at stability, but differ in the norms propagated to achieve that. Using fixed effects and IV estimations, we analyze a broad range of subnational stability measures in Africa. Aid by both the WB and China does not increase outright conflict nor any type of citizen protest, on average. Both even reduce outright conflict by governments against civilians. Still, Chinese aid is associated with more government repression and an increased acceptance of authoritarian norms, while the World Bank projects strengthen democratic values.

Suggested Citation

  • Kai Gehring & Lennart Kaplan & Melvin H.L. Wong, 2019. "China and the World Bank - How Contrasting Development Approaches affect the Stability of African States," Empirical Studies of Conflict Project (ESOC) Working Papers 15, Empirical Studies of Conflict Project.
    • Handle: RePEc:pri:esocpu:15
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    Cited by:

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    2. Richard Bluhm & Axel Dreher & Andreas Fuchs & Bradley C. Parks & Austin M. Strange & Michael J. Tierney, 2020. "Connective Financing - Chinese Infrastructure Projects and the Diffusion of Economic Activity in Developing Countries," CESifo Working Paper Series 8344, CESifo.
    3. Iacoella, Francesco & Martorano, Bruno & Metzger, Laura & Sanfilippo, Marco, 2021. "Chinese official finance and political participation in Africa," European Economic Review, Elsevier, vol. 136(C).
    4. Reiner Klingholz & Felix Braunsdorf & Christian Müller & Panu Poutvaara & Thieß Petersen & Claas Schneiderheinze & Rainer Thiele & Kai Gehring, 2019. "Wachsende Migrationsströme: Wie können die europäischen Länder die Fluchtursachen erfolgreich bekämpfen?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 72(23), pages 03-26, December.
    5. Becker, Malte & Krüger, Finja & Heidland, Tobias, 2024. "What Drives Attitudes toward Immigrants in Sub-Saharan Africa? Evidence from Uganda and Senegal," IZA Discussion Papers 16734, Institute of Labor Economics (IZA).
    6. Andreas Freytag & Miriam Kautz & Moritz Wolf, 2024. "Chinese aid and democratic values in Latin America," Public Choice, Springer, vol. 198(3), pages 531-593, March.
    7. Philip Akrofi Atitianti, 2023. "The impact of Chinese aid on political trust," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(2), pages 233-259, March.
    8. Xu, Yongfeng & Zhao, Xia, 2023. "Financial market risk, technology and natural resources nexus: Evidence from China," Resources Policy, Elsevier, vol. 81(C).
    9. Philip Akrofi Atitianti & Samuel Kofi Asiamah & Benedict Arthur & John Archison Duku, 2024. "Does Aid Improve Local Wealth? Micro‐Level Evidence from Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(5), pages 2372-2392, July.
    10. Wellner, Lukas & Dreher, Axel & Fuchs, Andreas & Parks, Bradley & Strange, Austin M., 2022. "Can aid buy foreign public support? Evidence from Chinese development finance," Kiel Working Papers 2214, Kiel Institute for the World Economy (IfW Kiel).
    11. Fuchs, Andreas & Kaplan, Lennart & Kis-Katos, Krisztina & Schmidt, Sebastian S. & Turbanisch, Felix & Wang, Feicheng, 2020. "Mask wars: China's exports of medical goods in times of COVID-19," Kiel Working Papers 2161, Kiel Institute for the World Economy (IfW Kiel).
    12. Sulin Sardoschau & Alexandra Jarotschkin, 2023. "Chinese Aid in Africa: Attitudes and Conflict," Rationality and Competition Discussion Paper Series 451, CRC TRR 190 Rationality and Competition.
    13. Pan, Kai & Cheng, Chengping & Kirikkaleli, Dervis & Genç, Sema Yılmaz, 2021. "Does financial risk and fiscal decentralization curb resources curse hypothesis in China? Analyzing the role of globalization," Resources Policy, Elsevier, vol. 72(C).
    14. Mandon, Pierre & Woldemichael, Martha Tesfaye, 2023. "Has Chinese aid benefited recipient countries? Evidence from a meta-regression analysis," World Development, Elsevier, vol. 166(C).
    15. Sardoschau, Sulin & Jarotschkin, Alexandra, 2024. "Chinese aid in Africa: Attitudes and conflict," European Journal of Political Economy, Elsevier, vol. 81(C).
    16. Dreher, Axel & Lang, Valentin & Reinsberg, Bernhard, 2024. "Aid effectiveness and donor motives," World Development, Elsevier, vol. 176(C).
    17. Eichenauer, Vera Z. & Fuchs, Andreas & Brückner, Lutz, 2021. "The effects of trade, aid, and investment on China's image in Latin America," Journal of Comparative Economics, Elsevier, vol. 49(2), pages 483-498.
    18. Carrie B Dolan & Kaci Kennedy McDade, 2020. "Pulling the purse strings: Are there sectoral differences in political preferencing of Chinese aid to Africa?," PLOS ONE, Public Library of Science, vol. 15(4), pages 1-18, April.
    19. Adam, Antonis & Tsarsitalidou, Sofia, 2022. "The effect of international development association's (IDA) aid on conflict. A fuzzy regression discontinuity approach," European Journal of Political Economy, Elsevier, vol. 74(C).
    20. Raphael J. Nawrotzki & Verena Gantner & Jana Balzer & Thomas Wencker & Sabine Brüntrup-Seidemann, 2022. "Strategic Allocation of Development Projects in Post-Conflict Regions: A Gender Perspective for Colombia," Sustainability, MDPI, vol. 14(4), pages 1-26, February.
    21. Heinzel, Mirko & Reinsberg, Bernhard, 2024. "Trust funds and the sub-national effectiveness of development aid: Evidence from the World Bank," World Development, Elsevier, vol. 179(C).
    22. Lu, Yangsiyu & Springer, Cecilia & Steffen, Bjarne, 2024. "Cofinancing and infrastructure project outcomes in Chinese lending and overseas development finance," World Development, Elsevier, vol. 175(C).

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    More about this item

    Keywords

    Development Models; Development Aid; Stability; Conflict; Repression; World Bank; China; Africa; Geolocation;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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