Abstract:By using panel data of 61 recipient countries from 2003 to 2014, this paper analyzes the different growth effect of China’s foreign aid and the aid from traditional donors by using system GMM regression for dynamic panel data. Furthermore, this paper also analyzes the interaction effect of foreign aid from China and the West. Our empirical results firstly show that, foreign aid from China significantly contribute to the growth of recipient countries including African and non-African countries by promoting bilateral trade and foreign direct investment from China to receipt countries while the aid from OECD-DAC does not significantly help to the growth of recipient countries. Secondly, this paper also shows that there is complementary relationship between aids from China and that from traditional West donor countries, and this complementary relationship is more significant and powerful in Africa than that in non-African countries.