Aid and Governance: Impact of Chinese Aid on the Evaluation of Government Performance in Sub-Saharan Africa

Abstract

One of a government's primary responsibilities is to provide public goods and services for the benefit of citizens. A government that excels in such provision may therefore win favorable evaluations from its citizens. However, if external state and non-state actors through foreign aid issuance become providers of what citizens expect from their government, citizens may doubt their government's competence. In recent decades, China has become an important donor to Africa, providing the continent with several aid projects. Consequently, this study examines whether aid from China undermines citizens’ evaluations of government performance. Geocoded data on Chinese aid projects are matched to 4 waves of Afrobarometer survey respondents from 31 sub-Saharan African countries. Using an instrumental variable estimation, the findings indicate that Chinese aid undermines the evaluation of government performance. Testing for the mechanism through which this effect manifests, the results suggest Chinese aid engenders corruption perceptions and erodes trust.