Why is China granting loans and making investments in Latin America? A comprehensive evaluation.

This study focuses in why China is offering loans to Latin America. Understanding the differing interests between the state (principal) and National Oil Companies ran by performance based managers (agent) is a necessary theoretical foundation in the understanding of Chinese foreign affairs. My ma...

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Bibliographic Details
Main Author: Santos Saint Romain, Carlos Eduardo
Other Authors: Zhang, Changdong
Format: Tesis de Maestría
Language:eng
Published: Beijing Shi / Universidad de Pekin 2017
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Online Access:http://repositorio.educacionsuperior.gob.ec/handle/28000/4308
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Summary:This study focuses in why China is offering loans to Latin America. Understanding the differing interests between the state (principal) and National Oil Companies ran by performance based managers (agent) is a necessary theoretical foundation in the understanding of Chinese foreign affairs. My main argument is that these agents have been able to manipulate the decisions of the state after analyzing the benefits, problems and misconceptions of Chinese Loans. It was found the more corrupt a Latin American country is, the higher the amount of loans it will receive. Second, the more developed a country is, the more loans it would receive, challenging the view that China is giving loans as development assistance. Third, being a member of OPEC or having natural resources does have a positive association with the loans granted. China needs energy in order to continue its development path granting NOCs the especial powers they enjoy today.