Download This PaperProject Aid and Firm Performance
University of Milan Bicocca Department of Economics, Management and Statistics Working Paper No. 479
89 Pages Posted: 2 Sep 2021
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Project Aid and Firm Performance
Project Aid and Firm Performance
Date Written: September 2, 2021
Abstract
This paper evaluates the effect of development project aid from the World Bank and China on firms' sales growth, using a large dataset of 110864 firms, spanning 121 countries between 2001 and 2016. We find that, contrary to the World Bank, Chinese ODA projects increase, on average, firm sales and, compared to sector-specific, Chinese region-specific aid positively affect firm performance. Finally, we show that the positive effect of Chinese aid is stronger for firms lacking transport infrastructure (and with better electricity provision), suggesting that aid may improve firm performance by releasing their infrastructure constraints.
Keywords: Aid effectiveness, World Bank projects, Chinese projects, Geo-coding, Firm growth
JEL Classification: F35, 019, E24, E25
Suggested Citation: Suggested Citation
Silvia Marchesi (Contact Author)
Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS) ( email )
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