Enhancing sustainable mobility in Africa: the role of Chinese investment and construction projects

Abstract

Over the past decades, China has played a significant role in major infrastructural projects as both investors and contractors. Transport systems, including air, rail, and road, are key components of this infrastructure. This paper examines the impact of Chinese investment and construction on sustainable mobility in Africa. We employ robust econometric identification strategies, including the Two-step System Generalised Method of Moments (S-GMM), on a panel sample of 36 African countries over nine years. Sustainable mobility is measured based on the four main transport systems: air, sea, rail, and road. Our results indicate that Chinese foreign direct investment is positively associated with sustainable mobility. Similarly, construction revenue significantly impacts sustainable mobility. These effects are more pronounced in resource-rich countries due to their attractiveness to China. These findings show the contribution of the Chinese-African partnership toward sustainable development in Africa. The results are robust to alternative measurements and are not sensitive to potential endogeneity.