Aid Projects and Firm Performance
Bibliographic Data
| ID | 4360793 |
|---|---|
| Authors | Silvia Marchesi (0000-0003-0748-7176, IZA - Institute of Labor Economics), Tania Masi (0000-0002-1947-5458, IZA - Institute of Labor Economics), Saumik Paul (IZA - Institute of Labor Economics) |
| Year | 2025 |
| Volume | 73 |
| Issue | 3 |
| Pages | 1251-1295 |
| Publication date | 2025-04-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Economic Development and Cultural Change (JOURNAL) |
| Journal identifiers | ISSN: 0013-0079 • E-ISSN: 1539-2988 |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/730829 |
| OpenAlex | W4394876503 |
| Language | EN |
| Citations received | 1 |
| References cited | 63 |
This paper evaluates the effects of subnational development aid projects from China and the World Bank on firm performance and considers the role of supply-side constraints of the firms as channels of transmission. We find that Chinese official development assistance (ODA) projects increase firm sales: a 1% increase in Chinese ODA commitments increases firm sales growth by 3%. Moreover, we find some evidence that Chinese ODA intervention crowds out local firms operating in the mineral sector, which is one of the most financed by China. We show that the positive effect of Chinese aid is stronger for firms lacking access to finance, suggesting that Chinese aid may improve firm performance by releasing a firm’s financing constraints. Finally, we find no causal effects between World Bank projects and firm performance
Business · Global Maternal and Child Health · International Development and Aid · Poverty, Education, and Child Welfare
Paris Declaration on Aid Effectiveness
Aid, China, and Growth
What Determines Productivity?
China's overseas lending
Aid Dependence and the Quality of Governance
Export Versus FDI with Heterogeneous Firms
Chinese aid and local corruption
Using luminosity data as a proxy for economic statistics
Measuring Economic Growth from Outer Space
Aid Under Fire
The Aid Effectiveness Literature
US Food Aid and Civil Conflict
Rogue aid? An empirical analysis of China's aid allocation
Bartik Instruments
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
Misallocation and Manufacturing TFP in China and India
The China Syndrome
The Permanent Effects of Transportation Revolutions in Poor Countries
Chinese FDI in Sub-Saharan Africa
Are “New” Donors Challenging World Bank Conditionality
Does Aid Effectiveness Depend on the Quality of Donors
Is Favoritism a Threat to Chinese Aid Effectiveness? A Subnational Analysis of Chinese Development Projects
Globalization, Structural Change, and Productivity Growth, with an Update on Africa
Global capital flows and financing constraints
Assessing the impact of World Bank preparation on project outcomes
The political economy of project preparation
Are corruption and taxation really harmful to growth? Firm level evidence
Electricity provision and industrial development
Firms amid conflict
China and the World Bank—How contrasting development approaches affect the stability of African states
Aid and growth
Aid, Dutch disease, and manufacturing growth
Development aid and international politics
Stigma or cushion? IMF programs and sovereign creditworthiness
African leaders and the geography of China's foreign assistance
The political economy of conditionality
Counting Chickens when they Hatch
Pleasing the Principal
Bilateral or Multilateral? International Financial Flows and the Dirty-Work Hypothesis
Apples and Dragon Fruits
Can Aid Buy Foreign Public Support? Evidence from Chinese Development Finance
Investment Climate and Firm Performance in Developing Economies
Foreign Aid, Institutions, and Governance in Sub-Saharan Africa
The Costs of Favoritism
"The Missing "Missing Middle
Immigration, Trade, and the Labor Market
| Unique citing works | 1 |
|---|---|
| Citations per year | 1 |
| Citation span | 2025 - 2025 (1) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 1 |