CHINA'S ALLOCATION OF FOREIGN AID TO SOUTHEAST ASIA: AN EMPIRICAL, COMPARATIVE ANALYSIS OF AID DONORS
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Date
2021-09-20
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Johns Hopkins University
Abstract
China is generally perceived as a donor that provides aid to countries that are deemed corrupt and politically unstable. Also, what invites criticisms against China is its use of aid beneficial only its own economy and its lack of regard for the needs of the recipient country. In this study, I seek to investigate empirically what factors drive the allocation of China’s aid to Southeast Asia and whether its allocation reflects the criticism China is being accused of. The study systematically examines the question of whether the foreign aid to Southeast Asia differs from that of other conventional donors.
The results of a regression analysis using AidData for the 2000~14 period suggest that although the criticism of China’s behavior has legitimate grounds in general, not all of it has merit. The analysis shows that the factor underlying the aid was to promote trade, with no discernable regard for the needs of the recipient countries. China has shown a tendency to allocate its aid to governments that are deemed to be corrupt and unstable. This result, which contrasts those obtained regarding the aid allocation of traditional donors, provides a clear indication that China has not yet shown any sign of adhering to the values that the international community has promoted.
To determine why China has adopted such a pattern of aid allocation, this study compares and contrasts China’s aid with that of traditional donors. A clear picture of their differences in historical context and background facilitates a better understanding of China’s aid and allows readers to judge whether the criticism against China’s aid deserves its legitimacy.
Principle Advisor: Professor Andrew Cheon
Advisor: Professor
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Keywords
china, foreign aid, southeast asia