A Comparative Study Of The Impact Of China-US Foreign Aid On The Economic Growth Of African Countries

Foreign aid has become an important international political and economic phenomenon in today's world,and it has had an important impact on the political,economic and social aspects of recipient countries.Since the 1960 s,discussions and debates on aid and economic growth have continued to these days.Africa,as the region with the largest number of “least developed countries” in the world,has performed well in economic growth in recent years.However,the relationship between the effect of a large amount of aid received by African countries and their economic growth remains confused.As the two largest economies in the world,China and the United States are active in the process of foreign aid in their own way.This paper will analyze the differences between China and the United States in aid to Africa's economic growth.It will help the aiding countries to improve their aid methods,and specifically improve the aid efficiency,and it also helps recipient countries to tackle problems in the aid process,and thus promote their own economic development.This paper selects 35 China-Africa-assisted countries and 46 US-Africaassisted countries between 2000 and 2014.Also the paper is based on relevant research at home and abroad.Through the analysis of empirical results,this paper has the following meaningful empirical results:(1)From the results of the basic regression,China's aid to African countries is better than US aid;(2)from the perspective of specific industries,firstly in terms of the impact of agricultural value added,China and the United States have no significant link to the agricultural value added of recipient countries.Secondly,in terms of the impact of industrial added value,China's aid has significantly promoted the industrial added value of the recipient countries after considering the lag period,while the US aid has a negative impact on it.Finally,in the impact of the added value of the service industry,China's aid has a significant negative correlation with the service industry of the recipient countries,while US aid can significantly promote the value-added of the service industry in the recipient countries;(3)From the perspective of the industrial distance of the service industry,although the added value of the service industry between China and the recipient countries has no obvious advantage,the service industry distance between China and the recipient countries still promotes the economy of the recipient countries.The United States has a greater advantage in the value added of the service industry than its recipient countries,and the service industry is higher,so the economic effect of the United States is better;(4)From the results of the quantile,China's aid generally has significant positive effects on countries with different degree of economic development;while US aid to African countries has a significant positive effect only on countries with faster and fastest economic growth.At the same time,there is a certain degree of innovation:(1)Previous studies on the aid effects of China and the United States have mostly been explained on a theoretical or political level,and there is little research on the empirical aspect,let alone a direct comparison of the differences in aid effectiveness between China and the United States.Therefore,this article directly compares the differences in the aid effects between China and the United States on the topic,which has certain practical significance and helps China to seek a more appropriate aid path and further improve China's aid effect.(2)In terms of research methods,when studying the economic indicators of recipient countries,this paper divides the economic indicators of recipient countries into agriculture,industry,and service part,and compares the differences in aid between China and the United States through industrial distance.In addition,this paper also uses the quantile regression method to explore the assistance of China and the United States to countries with different economic development scales,which will help us to understand the differences in the effectiveness of aid between China and the United States in a more comprehensive view.