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Buying influence? Rotating leadership in ASEAN and allocation of Chinese foreign aid

Authors
Lim, TaegyunKim, Sung Eun
Issue Date
1-May-2023
Publisher
OXFORD UNIV PRESS
Citation
INTERNATIONAL RELATIONS OF THE ASIA-PACIFIC, v.23, no.2, pp 351 - 377
Pages
27
Indexed
SSCI
SCOPUS
Journal Title
INTERNATIONAL RELATIONS OF THE ASIA-PACIFIC
Volume
23
Number
2
Start Page
351
End Page
377
URI
https://scholar.korea.ac.kr/handle/2021.sw.korea/142160
DOI
10.1093/irap/lcac003
ISSN
1470-482X
1470-4838
Abstract
China has expanded its economic footprint in Southeast Asian countries by providing a growing amount of development finance to the region. We examine the allocation of Chinese foreign aid toward Southeast Asian countries exploiting the exogenous variation of rotating leadership within Association of Southeast Asian Nation (ASEAN). As the ASEAN Chair possesses the agenda-setting power and represents the organization, China strategically allocates more development aid to the ASEAN Chair to augment its influence in the region. Our analysis of Chinese aid allocation between 2000 and 2017 finds that taking the leadership position at ASEAN appears to be significantly associated with an increase of official development aid flows from China, while other commercial flows are only weakly associated with the leadership position. Our findings underscore the importance of considering the regional context in examining foreign aid allocation and show that a donor can target a regional organization to exert its political influence in the region.
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