Connective financing: Chinese infrastructure projects and the diffusion of economic activity in developing countries

A-Tier
Journal: Journal of Urban Economics
Year: 2025
Volume: 145
Issue: C

Authors (6)

Bluhm, Richard (Universität Stuttgart) Dreher, Axel (not in RePEc) Fuchs, Andreas (not in RePEc) Parks, Bradley C. (not in RePEc) Strange, Austin M. (not in RePEc) Tierney, Michael J. (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 6 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper studies the causal effect of transport infrastructure on the spatial distribution of economic activity within subnational regions across a large number of developing countries. To do so, we introduce a new global dataset of geolocated Chinese grant- and loan-financed development projects from 2000 to 2014 and combine it with measures of spatial concentration based on remotely sensed data. We find that Chinese-financed transportation projects decentralize economic activity within regions, as measured by a spatial Gini coefficient, by 2.2 percentage points. The treatment effects are particularly strong in regions that are less developed, more urbanized, and located closer to cities.

Technical Details

RePEc Handle
repec:eee:juecon:v:145:y:2025:i:c:s0094119024001001
Journal Field
Urban
Author Count
6
Added to Database
2026-01-24