China's Foreign Aid at a Transitional Stage

17 Pages Posted: 10 Jul 2014  

Naohiro Kitano

JICA Research Institute

Date Written: July 2014

Abstract

By estimating China's foreign aid as a proxy for China's bilateral Official Development Assistance and by analyzing its implementation structure and policy, this paper sheds some light on China's foreign aid activities, which have been at a transitional stage. Based on our estimates, the level of foreign aid in terms of net disbursement has increased sharply since 2004, reaching around US$7.1 billion in 2013. Some measures to strengthen the implementation structure to deal with this expansion have been introduced by the central government; however, this transition process needs more time. To facilitate this process, China is attempting to absorb knowhow on development assistance from multilateral institutions and Organisation for Economic Cooperation and Development's Development Assistance Committee countries that are eager to share their knowledge, with the expectation that China will eventually play a major role in international development.

Keywords: China, economic cooperation, foreign aid, OECD DAC, regional cooperation

JEL Classification: F35, O19, F55

Suggested Citation

Kitano, Naohiro, China's Foreign Aid at a Transitional Stage (July 2014). Asian Economic Policy Review, Vol. 9, Issue 2, pp. 301-317, 2014. Available at SSRN: https://ssrn.com/abstract=2464358 or http://dx.doi.org/10.1111/aepr.12074

Naohiro Kitano (Contact Author)

JICA Research Institute

Japan

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