• The Journal of Industrial Distribution & Business
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• v.10 no.1
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• pp.69-76
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• 2019

Purpose - The purpose of this paper is to empirically investigate the effectiveness of Offcial Development Assistance (ODA) in recipient countries' economy. ODA is designed to mitigate poverty and stimulate economic growth in the developing countries. We classify total ODA into bilateral ODA and multilateral ODA depending on the number of donor countries. If the ODA flows from one donor country to one recipient country, it is classified as bilateral ODA. If the multiple countries simultaneously become donor countries through the international organizations such as United Nations and World Bank, it is classified as multilateral ODA. This paper compares the effect of bilateral ODA and multilateral ODA in determining recipient countries' economic development, and tries to provide policy implications to Korean ODA. Research design, data, and methodology - Our primary explanatory variables are bilateral and multilateral ODA. Private credit in recipient countries is adopted as additional explanatory variables to capture the level of financial development in recipient countries. We measure the ODA effectiveness using economic growth and quality of life of the recipient countries as the dependent variable. We collect 142 recipient countries' data from OECD statistics, during the period from 1970-2014. Panel least squares estimation with country fixed effect is employed as the empirical model. Results - Our results support that ODA variable has a negatively significant impact on recipient countries' economic growth, while it is positively correlated with human development index. Recipient countries' private credit is positively correlated with economic growth and human development index. The interaction variable of ODA and financial development turns out to be significant in general. We find that the positive effect of ODA depends on recipient countries' financial market development and this effect is stronger in multilateral aid than bilateral one. Conclusions - From the analysis, we have confirmed that the recipient countries financial development is the necessity condition to achieve positive effect of ODA. Based on these results, we suggest that Korean government should increase the share of multilateral funding and pay attention to recipient countries' financial market development to maximize the effectiveness of ODA.

• Journal of Korean Society of Forest Science
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• v.111 no.2
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• pp.330-344
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• 2022

While deforestation and forest degradation has continued globally, global society has been making efforts to prevent deforestation towards sustainable development. Reforestation in developing countries is linked to Sustainable Development Goals (SDGs) such as climate change mitigation, conservation of biodiversity, eradication of poverty and upholding of human rights. Forest official development assistance (ODA) restores the global forest land, and increases the public benefit. Bilateral forest ODA projects of the Republic of Korea have gradually increased and most of those projects have currently been concentrated in Asian countries. Selecting recipient countries for forest ODA requires more comprehensive approach since the global goals for sustainable development has been widely adapted to ODA strategic plans. We proposed potentially promising countries that are eligible for receiving 'Green ODA' in perspective of economic, social and environment to implement reducing emissions from deforestation and degradation (REDD+), conserving biodiversity, and combating desertification. As a result, the study suggests that forestry cooperation could be expanded from Asian countries more toward South America and African countries. In addition, we emphasized the need to promote convergence and integration with green technology to fundamentally solve the negative impacts of deforestation such as food, energy, water resource shortages, and forest fires. We advocated expanding bilateral ODA in the forestry sector through diversification of project activities, financial sources, and participants. Our study can contribute to the provision of basic information for establishing long-term strategies to expand bilateral cooperation in the forestry sector.

• East Asian Economic Review
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• v.16 no.4
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• pp.333-361
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• 2012

Development assistance plays an important role in contributing to the development process of Cambodia. The top bilateral donors, China, Japan, and Korea provide ODA to Cambodia in different characteristics and from different perspectives. This study tries to pull out some implications for Cambodia as recipient and for donors in order to achieve the development of Cambodia's economy-effectively by using the ODA. As a viewpoint, ODA structure emphasizes the intention of donors, either for their self-interest and benefit or for achieving MDGs. China's ODA to Cambodia seems to distort the ODA allocation by other donors with unconditional loans or loans with conditionality focusing only on infrastructure. Cambodia benefits from the better infrastructure, but it has to pay the price set by China, even for concessional loans. The driving interests of Japan and Korea are more influenced by their national policy goals and the expected perceptions of their voters. The aid projects should at least catch the attention of national media or win obvious and unbiased support from the suffering people in the recipient countries.

• Journal of Practical Engineering Education
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• v.7 no.1
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• pp.57-66
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• 2015

While North-South cooperation (NSC) continues to play a considerably dominant role in international development cooperation efforts, there is growing criticisms across the world as to the role and effectiveness of the NSC to support the developing countries to meet their development needs. As such, South-South cooperation (SSC) has become a subject of discussion in recent years across the world in international development and has increasingly become popular as an effective aid modality. However, there is unavailability of sufficient empirical studies about the efficacy of the SSC in the context of Bangladesh. The present paper attempts to examine two KOICA's projects to facilitate HRD in ICT in Bangladesh taking into consideration of Korea as a southern country. The study revealed that Korea's bilateral development cooperation efforts have been effective so far to fulfill their objectives. The findings of the study put forward that SSC may work in the form of technical cooperation to support the developing countries, provided that technical cooperation is demand-driven, and that there is sufficient level of absorptive capacity and supportive policy as well on the part of developing partner country to utilize external skills and technology.

• KDI Journal of Economic Policy
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• v.29 no.2
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• pp.41-74
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• 2007

This paper aims to assess the effectiveness of Korea's official development assistance (ODA) in terms of improvement in per capita gross domestic product (GDP) of aid recipients, and promotion of Korea's exports and outward foreign direct investments (FDI) to ODA recipients. The assessment has also been done for different groups of aid recipient countries divided by their regional location, income level, and economic freedom. For this purpose, this paper empirically tests the effectiveness of bilateral grants and loans for 163 aid recipient countries during the period of 1990 to 2003. Results show that ODA from Korea had not been able to explain the variations in aid recipient countries' growth in per capita GDP. Provision of aid promoted outward FDI to aid recipient countries during the entire period considered. With respect to exports, provision of aid had facilitated Korea's exports to aid recipient countries, except for the period of 2000~2003. On the basis of the findings, recommendations for future aid policy have been made.

• Journal of International Area Studies (JIAS)
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• v.14 no.3
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• pp.421-440
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• 2010

This paper examines middle powers' ODA policy in the post cold war era and discusses its implication for Korean aid strategy. Middle powers' ODA has been more successful than that of super powers in promoting donors' positive images and in stimulating recipient countries' development. Middle powers tend to pursue multilateral solutions to international problems often by taking a mediator role, and their ODA policies set them apart from the great players in international politics. Middle powers' ODA is primarily aimed at reducing poverty and protecting human rights in least developed countries where humanitarian aid needs the most rather than promoting donors' interests. Also, middle powers have provided bilateral untied aid in the sectors of food aid and emergency relief and steadily devoted about 0.7% of their gross national income to ODA. Meanwhile, Korea as an emerging middle power and a new donor has been implementing its own aid strategy under the name of the Korean development model since the post cold war period. The Korean ODA was not successful in building donors' positive images by simply following the short term strategies of US and Japan. Yet, its ODA policy has been quite effective in sustaining local development by creating specific niches in which the country can specialize in. In specific, Korea has focused on developing the sectors of information and communication technology and industry energy in recipients' countries by maximizing its comparative advantage.

• The Journal of Industrial Distribution & Business
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• v.9 no.1
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• pp.25-38
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• 2018

Purpose - The purpose of this study is to empirically investigate the impact of donor's fiscal status on aid decisions before and after the 2008 global financial crisis. The effects on aid can change depending on the donor country's fiscal status and the period of financial crisis. Research design, data, and methodology - A fixed effect regression and dynamic panel GMM is conducted using a comprehensive dataset combining 31 donor and 167 recipient countries during 1996-2015. The key explanatory variable is central government debt-to-GDP ratio of donor country. Recipient countries' GNI per capita, population, governance indicators, and bilateral trade-to-GDP ratio between donor and recipient countries are included as control variables. Results - We can confirm the relationship between donor country's fiscal status and aid flow. The cyclical component of government debt is found to have a negative impact on grant decisions particularly after the 2008 global financial crisis. This effect becomes larger in the countries with high government debt-to-GDP ratio. ODA decisions from the countries with low financial constraint do not significantly affected by the recipient countries' factors such as GNI, population, and governance indicator. Conclusions - Based on the empirical results of this study, the source of aid should be diversified by incorporating private sector and innovative financing sources.

• Food Science and Industry
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• v.55 no.3
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• pp.326-336
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• 2022

Since the food industry, including the agricultural production, is the largest industrial sector in Myanmar, the Myanmar government and industry have a strong willingness to develop the food manufacturing industry despite the limitations of investment, production and technological level. Particularly, the Myanmar government recognizes that the agricultural product-based food industry is an essential element for national economic growth, and is promoting various policy efforts for the industrial development. Therefore, the overall status of the food industry in Myanmar has been reviewed in this study. Also, the TASK (Technology Advice and Solutions from Korea) project in the food processing sector as an ODA (official development assistance) program has been specifically addressed in order to strengthen bilateral cooperation between Korea and Myanmar in the near future.

• Journal of Korean Society of Forest Science
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• v.109 no.2
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• pp.223-230
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• 2020

Central Asia has great growth potential for cooperation as the Korean Official Development Assistance (ODA) program expands and diversifies. In the case of the forest sector, Korea's successful greening experience has attracted interest from countries in Central Asia. In particular, the depletion of the Aral Sea and a widespread environmental degradation should motivate regional cooperation as well as highlights the need to establish a multilateral cooperative system. The limitation of existing bilateral cooperation, which is the limitation of South-South cooperation, is underscored by the engagement of new donors or the multilateral cooperation and triangular cooperation of organizations is receiving new attention. In addition, Central Asia is suitable for implementing the basic concepts of triangular cooperation. Korea is able to make complementary regional agreements using friendly partnerships with Kazakhstan (the Emerging Donor) and Uzbekistan (the second South Korean Focus Country of ODA). To reinterpret the basic concept of triangular cooperation, three regional cooperation strategies for Central Asia are proposed in this study: windbreak forest development to guarantee resident settlement, resident income increase, and protection of the Aral Sea from further degradation.

• Environmental and Resource Economics Review
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• v.23 no.2
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• pp.157-185
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• 2014

The Kyoto Protocol has extended its life until 2020 by the decision at COP18 in Doha, Qatar in 2012. So has the Kyoto Mechanism of CDM, JI, and ETS. Nonetheless, the sustainability of CDM projects is jeopardized by the recent rule changes in the international emissions trade market such as EU ETS and the price decrease in emission credits. In particular, the domestic CDM projects reducing non-$CO_2$ GHG emissions are being directly affected. This study examines the trend of carbon credit price change in the international market. It also examines how the rule changes in the international emissions trade market have affected domestic non-$CO_2$ CDM projects through which mechanisms. The policy implications drawn from this study is two-fold: it suggests how the government can assist the project developers in utilizing GHG emission reduction technologies and the market in promoting investment environment before the domestic ETS enters into effect in 2015; apart from possible measures within ETS, an additional measures such as bilateral carbon offset system is suggested to help the private sector reduce uncertainty in investment and increase options to choose.