Do authoritarian regimes receive more Chinese development finance than democratic ones? Empirical evidence for Africa
Tobias Broich
#2017-011
This study is part of an emerging literature that aims to shed light on
China's development finance activities in Africa using quantitative
estimation techniques. This paper empirically investigates whether
African authoritarian regimes receive more Chinese development
assistance than democratic ones, both in absolute and relative terms. I
use three different measures of democracy/autocracy which allows me to
check whether my results depend on the specific indicator chosen. The
OLS results suggest that Chinese development finance does not
systematically flow to more authoritarian countries, controlling for
strategic, economic, political, institutional and geographic confounding
factors. The results are not driven by the specific democracy indicator
used in the analysis. The findings remain virtually unchanged if I
reduce the sample to Sub-Saharan Africa only. Furthermore, the results
stand up to several robustness checks, including FE, RE and instrumental
variable estimation.
Key words: Development Finance, Foreign Aid, China, Africa, Autocracy, Democracy
JEL Classification: F35, H10, O11, O55