Does official aid pave the road for private foreign investment or does it suffocate private initiative by diverting … marginal effect of aid on private foreign investment is close to zero. Surprisingly, however, the effect is strictly positive …

capital account, even though the opening of the latter happened de facto, not de jure. With respect to China being Africa … that capital flows from China to Africa in the form of mainly economic cooperation projects, but also FDI contribute to an … appreciation of the local currencies vis à vis the RMB, while no such effect appears for aid ows from China. The former two …