Implications of Political-driven Investments: Debt Trapper or Growth Booster?

• In Event: The Politics of Debt and Exchange Rates

Brief Overview

Political-driven investments decrease the debt-to-GDP ratio while enhances GDP per capita growth rates in the recipient countries. This paper uses China's Belt and Road Initiative (BRI) as a valid instrumental variable for causal identification.

Author

• Yue Lin, University of California-Berkeley