cari_wp48_amendolagineintldevtlendingglobalvaluechainsafrica-1-8a2df03f12c1c7ad.pdf

This research paper analyzes the impact of Chinese Development Lending (CDL) and World Bank Development Lending (WBDL) on the participation of 35 African countries in global value chains (GVCs) between 2000 and 2018. The author finds that while Chinese loans increase the overall intensity of GVC participation—primarily through infrastructure investments in transport and communications—World Bank loans are more effective at helping countries move toward higher value-added, upstream positions in production networks due to their focus on social sectors like education and health.

• Chinese Development Lending (CDL) increases the intensity of African countries' participation in global value chains (GVCs), with the effect becoming statistically significant from the second year after the loan and increasing over time. By the fourth year, a 1 percent increase in CDLs is associated with a 0.55 percent increase in GVC involvement.
• World Bank Development Lending (WBDL) is more effective than Chinese lending at driving African countries toward 'upstream' GVC positions, meaning they export more value-added products than they import. This is attributed to the World Bank's focus on social sectors, such as education and health, and its higher use of concessional terms.
• Within Chinese lending, loans specifically directed toward the transport and communication sectors significantly enhance GVC participation by reducing trade costs. In contrast, Chinese loans to the power and water sectors do not show significant results in altering GVC participation.
• Concessional loans from China provide greater benefits for GVC participation than non-concessional loans. In the fourth year after a loan to the transport and communication sector, a 1 percent increase in loan volume generates a 0.52 percent increase in GVC participation for concessional loans, compared to 0.38 percent for non-concessional loans.
• The sectoral distribution of lending differs sharply between the two sources: approximately 60 percent of Chinese loans are directed to infrastructure (with 36 percent specifically for transport and communication), whereas social sectors account for 40.6 percent of World Bank loans.

APA

South African Institute of International Affairs (n.d.). cari_wp48_amendolagineintldevtlendingglobalvaluechainsafrica-1-8a2df03f12c1c7ad.pdf. https://saiia.org.za/wp-content/uploads/2021/05/CARI_WP48_AmendolagineIntlDevtLendingGlobalValueChainsAfrica-1.pdf

Chicago

South African Institute of International Affairs. cari_wp48_amendolagineintldevtlendingglobalvaluechainsafrica-1-8a2df03f12c1c7ad.pdf. n.d. https://saiia.org.za/wp-content/uploads/2021/05/CARI_WP48_AmendolagineIntlDevtLendingGlobalValueChainsAfrica-1.pdf.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=cari_wp48_amendolagineintldevtlendingglobalvaluechainsafrica-1-8a2df03f12c1c7ad.pdf |url=https://saiia.org.za/wp-content/uploads/2021/05/CARI_WP48_AmendolagineIntlDevtLendingGlobalValueChainsAfrica-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairsndcariwp48amendolagineintldevtlendingglobalvaluechainsafrica18a2df03f12c1c7adpdf, author = {{South African Institute of International Affairs}}, title = {{cari\_wp48\_amendolagineintldevtlendingglobalvaluechainsafrica-1-8a2df03f12c1c7ad.pdf}}, institution = {South African Institute of International Affairs}, url = {https://saiia.org.za/wp-content/uploads/2021/05/CARI_WP48_AmendolagineIntlDevtLendingGlobalValueChainsAfrica-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }