Transport Infrastructure Connectivity and China–DRC Bilateral Trade Performance: An Empirical Analysis
DOI:
https://doi.org/10.54097/e4pkwm31Keywords:
China–Africa trade, Belt and Road Initiative, Infrastructure quality, Gravity model, DRC, Panel data, Bilateral trade flowsAbstract
This paper examines the causal relationship between transport infrastructure connectivity and bilateral trade performance between China and the Democratic Republic of Congo (DRC) over the period 2000–2023. Employing a gravity model augmented with infrastructure quality indices, panel data fixed-effects estimations, and vector autoregression (VAR) analysis, we provide robust empirical evidence that improvements in road density, port efficiency, and multimodal connectivity significantly increase bilateral trade flows. Using provincial-level panel data and an instrumental variable (IV) strategy based on historical colonial transport networks as an instrument for contemporary infrastructure quality, our baseline estimates indicate that a 10% increase in infrastructure connectivity raises bilateral trade by 6.8–9.4%, with effects persisting over a 2–3 year horizon. Heterogeneity analysis reveals that the trade-enhancing effects are most pronounced for manufactured goods and mining outputs, consistent with Belt and Road Initiative (BRI) sector-specific investment patterns. Our findings survive a battery of robustness checks including alternative infrastructure measures, synthetic control methods, and spatial error corrections. The results carry important policy implications for infrastructure-led development strategies in Sub-Saharan Africa.
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