eprintid: 24209 rev_number: 15 eprint_status: archive userid: 3114 dir: disk0/00/02/42/09 datestamp: 2018-03-23 12:44:39 lastmod: 2019-02-21 12:23:18 status_changed: 2018-03-23 12:44:39 type: workingPaper metadata_visibility: show creators_name: Eichenauer, Vera Z. creators_name: Fuchs, Andreas creators_name: Brueckner, Lutz title: The Effects of Trade, Aid, and Investment on China's Image in Developing Countries subjects: 330 divisions: 181000 cterms_swd: public opinion cterms_swd: exports cterms_swd: development assistance cterms_swd: foreign direct investment cterms_swd: China cterms_swd: Latin America cterms_swd: anti-Sinicism cterms_swd: soft power abstract: One goal of China’s Go Out policy is to create goodwill in countries around the world. At the same time, China’s growing economic engagement has provoked much criticism. This paper is the first to study whether these activities change the attitudes of individuals in developing countries towards China at both the national and subnational level. Using repeated cross-sectional survey data from the Latinobarómetro, we analyze whether and how growing amounts of exports, foreign aid, and foreign direct investment from China to Latin America affect opinions on China within 18 Latin American countries over the 2002-2013 period. We run instrumental-variables regressions by exploiting exogenous variation in the supply of Chinese exports, aid, and investment proxied by China’s market penetration of developing countries outside Latin America. In contrast to the widespread criticism, we do not find evidence that China’s growing economic activities in the respective countries deteriorate average attitudes towards China — neither at the national nor the provincial level. However, our results show that the young, educated, and economically privileged population develops more positive views of China. We interpret this as evidence that China’s economic engagement creates winners and losers. date: 2018-03-22 publisher: University of Heidelberg id_scheme: DOI id_number: 10.11588/heidok.00024209 schriftenreihe_cluster_id: sr-3 schriftenreihe_order: 0646 ppn_swb: 1654785881 own_urn: urn:nbn:de:bsz:16-heidok-242095 language: eng bibsort: EICHENAUERTHEEFFECTS20180322 full_text_status: public series: Discussion Paper Series volume: 0646 place_of_pub: Heidelberg citation: Eichenauer, Vera Z. ; Fuchs, Andreas ; Brueckner, Lutz (2018) The Effects of Trade, Aid, and Investment on China's Image in Developing Countries. [Working paper] document_url: https://archiv.ub.uni-heidelberg.de/volltextserver/24209/1/__ad.uni-heidelberg.de_wiso_u.arnold_Desktop_Eichenauer%2C%20Fuchs%2C%20Brueckner_2018_dp646.pdf