Foreign-assisted infrastructure and local employment: Evidence from China's aid to Africa-中国发展研究院

Foreign-assisted infrastructure and local employment: Evidence from China's aid to Africa

发布者：中国发展研究院发布时间：2025-05-29

Abstract

This study examines the impact of Chinese infrastructure aid on local employment across ten African countries, surveying over 500,000 individuals from 2000 to 2014. Utilizing variations in proximity to aid projects and the timing of project construction relative to local surveys reveals that Chinese aid increases local employment by two percentage points in areas near project sites compared to those awaiting project commencement, contrasting with regions without such aid. Employment rises with the onset of construction, primarily benefiting individuals with lower educational attainment, and persists post-completion, sustained by the migration and employment of skilled workers. Various infrastructure projects temporarily boost local employment, with long-term benefits particularly pronounced for projects in education, healthcare, and water and power utilities. Cross-sectoral and spatial spillover effects are also identified, with results remaining robust after accounting for additional local development factors.

Keywords

Africa;

Aid projects;

China;

Education;

Employment;

Foreign aid;

Infrastructure;

Labor;

Productivity;

Migration