Open AccessChina’s Infrastructure Financing and the Role of Infrastructure in Awakening African Economies
Publication year - 2021
Publication title -
the journal of comparative asian development
Language(s) - English
Resource type - Journals
eISSN - 2150-5403
pISSN - 1533-9114
DOI - 10.4018/jcad.20210701oa02
Subject(s) - china , generalized method of moments , electricity , panel data , emerging markets , business , economics , economy , finance , econometrics , geography , archaeology , engineering , electrical engineering
African economies, through Agenda 2063, recognize that developing infrastructure – transport, electricity, energy, water, and e-connectivity – will be critical for the region to assume a lasting place in the global economic system. As a result, this paper addresses the continent’s infrastructure gap and provides an important insight into the rapidly growing presence of China’s official infrastructure financing in Africa as well as the distinctive character of its involvement. In addition, the paper provides an empirical evaluation of the role of infrastructure in awakening African economies. The generalized-method-of-moments (GMM) estimator for dynamic models of panel data developed by Arellano and Bond (1991), and Arellano and Bover (1995) was employed to estimate an infrastructure-increased growth model.