By combing geocoded project-level data on Chinese development assistance
with geocoded household-level data from the Demographic and Health
Survey (DHS), we investigate the effect of Chinese project assistance on
household welfare in 13 sub-Saharan African countries. We exploit the
geographic proximity of household clusters across two different DHS
survey waves (before and after the influx of Chinese aid) and use a
difference-in-difference design in order to investigate the impact of
Chinese aid on households' wealth and education. Our results
consistently point to an overall positive effect of Chinese project
assistance on household welfare: areas that receive Chinese projects are
more likely to be wealthier, stay in school longer, and achieve a higher
educational attainment than areas which did not receive such projects.
Results are robust to various alternative model specifications.
Keywords: OECD-DAC, Aid Allocation, aid effectiveness, China, Africa, emerging donors, project level, household welfare, DHS, geocoded data
JEL Classification: F35, O19, R20