Browsing by Subject "Development finance"

Type the first few letters and click on the Browse button
Now showing 1 - 1 of 1
  • Thumbnail Image
    Publication
    Does India use development finance to compete with China? A subnational analysis
    (2025) Asmus-Bluhm, Gerda; Eichenauer, Vera Z.; Fuchs, Andreas; Parks, Bradley; Asmus-Bluhm, Gerda; Department of Economics, University of Hohenheim, Germany; Eichenauer, Vera Z.; KOF Swiss Economic Institute, ETH Zürich, Switzerland; Fuchs, Andreas; Department of Economics, University of Göttingen, Germany; Parks, Bradley; AidData, Global Research Institute, William & Mary, Williamsburg, VA, USA
    China and India increasingly provide aid and credit to developing countries. This article explores whether India uses these financial instruments to compete for geopolitical and commercial influence with China. We build a new geocoded dataset of Indian government-financed projects in the Global South between 2007 and 2014 and combine it with data on Chinese government-financed projects. Our regression results for 2,333 provinces within 123 countries demonstrate that India’s Exim Bank is significantly more likely to locate a project in a given jurisdiction if China provided government financing there in the previous year. Since this effect is more pronounced in countries where India is more popular relative to China and where both lenders have a similar export structure, we interpret this as evidence of India competing with China. By contrast, we do not find evidence that China uses official aid or credit to compete with India through co-located projects.