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Korea Trade Research Association (한국무역학회)
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Attraction Factors of Official Development Assistance (ODA) and Foreign Direct Investment(FDI) in African Countries

아프리카에 대한 공적개발원조 및 외국인직접투자의 유치요인

  • Dong Geun Han (Department of Saemaul Studies & International Development, Yeungnam University) ;
  • Byung Kyu Park (Saemaul Globalization Foundation)
  • 한동근 (영남대학교 새마을국제개발학과) ;
  • 박병규 (새마을세계화재단)
  • Received : 2021.01.05
  • Accepted : 2021.02.25
  • Published : 2021.02.28
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Abstract

Developing countries are in competition to attract ODA and FDI in an effort to overcome poverty and development. This study tries to identify factors influencing the distribution of ODA and FDI resources and analyzes if ODA and FDI are in complementary relationship. We use a panel data for 53 African countries during early and middle of 2000 period. Factors affecting the ODA distribution include per capita GDP, physical infrastructure, good institutions of receiving countries. FDI was found to be positively affected by market size, trade openness, human capital accumulation, business-friendly regulatory environment. The impact of ODA is believed to be more effective and sustainable if it has a complementary relationship with FDI. Our result, however, did not confirmed the complementarity relation between the two.

Keywords

Acknowledgement

This Research was supported by the 2020 Yeungnam University Research Grant.

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