The Impact of China's “Stadium Diplomacy” on Local Economic Development in Sub-Saharan Africa
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Contributors
Abstract
This study investigates the economic impact of China's “stadium diplomacy” in Sub-Saharan Africa. Exploiting the staggered timing of the construction in a difference-in-differences framework, we analyze the effect of Chinese-built and financed stadiums on local economic development. Employing nighttime light satellite data, we provide both an aggregate and spatially disaggregated assessment of these investments. We find that a stadium's city nighttime light intensity increases by about 24 percent, on average, after stadium completion. The effects can be attributed to the stadiums but are not only visible close to the stadium's location. Estimates on nighttime light activity are mirrored by individual-level employment effects in the stadiums’ surrounding area. For stadiums not built or financed by China, we cannot find similar effects. Our results contrast with the widely held notion that China's development finance projects constitute “white elephants”.
Details
Original language | English |
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Article number | 106765 |
Journal | World Development |
Volume | 185 |
Publication status | Published - Jan 2025 |
Peer-reviewed | Yes |
External IDs
ORCID | /0000-0002-6526-9663/work/168207954 |
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Keywords
Sustainable Development Goals
ASJC Scopus subject areas
Keywords
- Local public infrastructure, Nighttime light, Regional development, Stadium diplomacy, Sub-Saharan Africa