Published on March 27, 2026 Updated on March 27, 2026
Location
Pôle Tertiaire - Site La Rotonde - 26 avenue Léon Blum - 63000 Clermont-Ferrand
Room 212

Research Seminar. Development Finance and Structural Change: World Bank and Chinese Infrastructure in Africa

Eddy Guesrim Yanogo
CERDI, UCA
Ferdi, Banque de France

Abstract

Sub-Saharan Africa receives large-scale infrastructure investment from both the World Bank and China, yet little is known about their comparative or complementary effects on local economies. This paper estimates the labor market impacts of proximity to geocoded infrastructure projects from both donors, using individual-level survey data across multiple African countries. I employ a difference-in-differences strategy based on the staggered timing of project starts and spatial variation in project placement. The analysis proceeds in two steps: first, I estimate the effects on individual employment outcomes, including sectoral reallocation; second, I aggregate to the subnational level to assess whether infrastructure aid drives broader structural transformation. Beyond comparing the two donors separately, I test whether localities exposed to both World Bank and Chinese projects experience amplified effects. The paper contributes to the literature on the effectiveness of development finance by assessing how multilateral and bilateral infrastructure aid shape structural change in Africa.
 

Photo : Ferdi