Does Chinese FDI in Africa inspire support for a china model of development?. (February 2022)

• Record Type: Journal Article
• Authors: McCauley, John F.; Pearson, Margaret M.; Wang, Xiaonan
• Is Part Of: World development. Volume 150(2022)
• Publication Date: 2022-02
• Subjects: China model -- FDI -- Development -- Africa -- Georeferenced data -- Afrobarometer; Economic history -- 1990- -- Periodicals; Economic assistance -- Developing countries -- Periodicals; 330.9
• DOI: 10.1016/j.worlddev.2021.105738
• Languages: English
• ISSNs: 0305-750X

Abstract

Highlights: We investigate how FDI from Chinese firms shapes individual-level perceptions of China's approach to development in Africa. We connect precisely located data on FDI projects to geolocated survey data. Nearby Chinese FDI decreases respondents' perceptions of China's model of development as the best model for their country. Respondents living near manufacturing projects view infrastructure development as a positive contribution from China. Those living near resource-related projects express concerns about Chinese land grabs and job threats. Abstract: Chinese Foreign Direct Investment (FDI) to Africa is quickly becoming a centerpiece of China's approach to promoting development overseas. To this point, however, little is known about the extent to which those investment projects inspire popular support for a China model of development in Africa, or whether Chinese FDI invites skepticism and concern among community members in the region. In this study, we investigate the effects of proximity to Chinese FDI on local perceptions of China's approach to development in Africa. We geolocate 200 Chinese investment projects, and we spatially connect those data to responses from over 35, 000 georeferenced survey respondents across 21 countries. By comparing responses from those living near operational Chinese FDI projects to responses from those living near eventual locations of Chinese investment but where no project yet exists at the time of the survey, we determine the proximity effects of Chinese FDI on views of the China model of development while accounting for the potential nonrandom location of those investment projects. The findings indicate that, on average, living near Chinese FDI projects reduces support for a China model of development. Furthermore, specific types of FDI projects evoke distinct evaluations of China's presence. Specifically, respondents living near manufacturing projects view infrastructure development as a positive contribution from China, whereas those living near resource-related projects express concerns about Chinese land grabs and job threats. Those living near service projects hold more mixed views. The results suggest that people living in close proximity to Chinese FDI projects in Africa are swayed less by global development narratives than by how those projects shape their everyday lives and experiences.