G L O B A L C H I N

6 www.bu.edu/gdp • H5: The larger the share of a country’s exports of the resource attached to the loan, as a percentage of China’s total imports of the resource, the lower the expected interest rate. [...] 5 For instance, a CHEXIM loan for the construction of the Ninh Binh nitrogenous fertilizer plant in Vietnam was secured by the plant itself, a loan by ICBC to Indonesia for the building of a skyscraper was collateralized by the land on which the building was built and part of the Chinese loan financing provided by CHEXIM for the Bui Dam project in Ghana was backed by cocoa. [...] 7 The results are robust to the inclusion of the IMF programs dummy variable or the IMF financial development index as replacements for the OECD country risk classification as a financial risk measure and to the inclusion of the V-Dem politi- cal violence, political corruption and liberal democracy indices as replacements for the World Bank’s political stability and absence of violence, corruption. [...] However, an interview with a representative of the Ghanaian Ministry of Finance, who participated in the negotiation process with Sinohydro in Beijing, revealed that from the point of view of the Chi- nese, though the loan was to be repaid using bauxite, the bauxite resource itself was not considered collateral for the loan. [...] The bauxite mine operates as a joint venture between Sinohydro and a Ghanaian firm, and the Chinese were cau- tioned about the productivity of the bauxite mine due to the joint-venture nature of the partnership.