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The Impact of Chinese Infrastructure Projects on Economic Activities in sub-Saharan Africa

Amid a weak and uneven economic recovery in the Global South, regional development and infrastructure investment seem to be critical to sustainable development. In particular, infrastructure provision is seen as an “unmissable driver for development” in the sub-Saharan Africa (SSA) region. Over the past 20 years, China has grown to be the largest lender for -- and builder of -- infrastructure in SSA. But how have Chinese investment projects impacted local economic activities in SSA countries? And are there spatial spillover effects from those infrastructure projects across regional borders? In a new working paper, Yan Wang and Yinyin Xu use aspatial and spatial econometrics analysis to gauge the impact of Chinese infrastructure projects on economic activities in local jurisdictions in SSA. They find that the existence of Chinese infrastructure projects leads to increased economic activity proxied by nighttime luminosity and notable positive spillovers in neighboring jurisdictions in the SSA region. In this micro-webinar chat, Yan Wang discusses the impact of Chinese infrastructure projects on economic activities in the SSA region with Rebecca Ray. Rebecca Ray is a Senior Academic Researcher with the Global China Initiative at the Boston University Global Development Policy Center. Yan Wang is a Senior Academic Researcher at the Global China Initiative of the Boston University Global Development Policy Center and a Senior Visiting Fellow with the Institute of New Structural Economics at Peking University. She is also a consultant to the World Bank Group, where she previous worked for 20 years as Senior Economist and Team Leader. She also served Coordinator of the OECD Development Assistance Committee and China Study Group for two years. The Boston University Global Development Policy Center is a university-wide research center that works to advance policy-oriented research for financial stability, human well-being and environmental sustainability across the globe. Read the working paper: https://www.bu.edu/gdp/2024/05/20/dir... Explore data in the China's Overseas Development Finance Database: http://www.bu.edu/gdp/chinas-overseas...