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Deciphering Chinese Financing To African Countries

By Gwen Geng

The paper considers what attracts Chinese aid and Chinese investment to African countries and what kinds of Chinese financing projects are more likely to have unrevealed financing amount. The main database used is AidData: China’s Official Finance to Africa 2000-2012. It contains 2356 Chinese financing projects to 50 African countries. The results suggest that Chinese aid supports less developed economies, while Chinese investment favors countries with resource abundance and political conditions conducive to profit-making. The findings show that projects with unrevealed funding amounts tend to fall under investment and the government sector among other categories, raising questions on financing secrecy.

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Advisors: Robert Garlick and Michelle Connolly | JEL Codes: F13, F54, N47, N57, O24, R11, R15

Foreign Aid Allocation and Impact: A Sub-National Analysis of Malawi

By Rajlakshmi De

Understanding the role of foreign aid in poverty alleviation is one of the central inquiries for development economics. To augment past cross-country studies and randomized evaluations, this project data from Malawi is used in combination with multiple rounds of living standards data to predict the allocation and impact of health aid, water aid, and education aid.  Both instrumentation and propensity score matching methods are used.

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Advisor: Kent Kimbrough, Lori Leachman | JEL Codes: F35, I15, I25, I32, O12 | Tagged: Development, Education, Foreign Aid, Health, Malawi, Water

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