Transcript 슬라이드 1 - NUS Faculty of Arts and Social Sciences

Determinants of Korea’s
Official Development Assistance (ODA)
Allocation
Doo Won Lee
Kyu Won Kim
Hyun Seok Shim
January 9th 2009
School of Economics
Yonsei University
Contents
I.
Introduction
II. The Status and Characteristics of Korea's Foreign Aid
i. The Evolution and Current Status of Korea's Foreign Aid
ii. Literature Review on Determinants of Development Aid
III. Analysis of Determinants of Korean ODA
i. Analysis model and data
ii. Discussion of Results
IV. Summary and Conclusion
I. Introduction
□ What is ODA?
Official Development Assistance
□ ODA as an important tool for strategic foreign economic policy :
Approaching ODA not only from its humanitarian aid purposes
but also from the national interests of the donor country
□ An example of ODA being used towards national interest
China
Japan
Korea
“Resource Diplomacy”
Through ODA support and
economic cooperation across
resource-rich countries,
China is gaining a
competitive advantage in the
struggle for energy
resources.
Most of Japanese foreign aid
is in the form of conditional
loan, mostly aimed at
assisting Japanese corporate
activity overseas.
Humanitarian aid such as
food support and emergency
aid only constitute
0.2~0.5%.
“Comprehensive Package”
type of foreign aid, including
but not limited to: building
plants for energy resource
extraction and production in
countries receiving aid,
building social
infrastructure, and increasing
trade and investment
between the countries.
I. Introduction
□ Purpose
∙ To analyze in what ways and how much Korea's ODA is helping to
accommodate Korean national interests.
∙ To assess how effective Korean foreign aid was with respect to
national interest of Korea.
□ How to Analyze
∙ Econometric model to analyze the relationship between the level of
economic cooperation with the countries receiving aid and the
allocation of Korea's ODA.
□ Main Results
∙ Korea's ODA most significantly affected by the amount of exports
from Korea to the recipient country.
∙ Energy production has not been a significant factor in determining
ODA.
II. i. The Evolution and Current Status of Korea's Foreign Aid
(units: US $ mn, %)
Source: Int'l Economic Affairs Bureau, Ministry of Strategy and Finance of the Korean Gov't,
April 4, 2008.
II. i. The Evolution and Current Status of Korea's Foreign Aid
(units: US $ mn, %)
Note: GNI is assumed to grow at 5.0%/year, ODA/GNI is assumed to increase at 0.026%/year.
II. i. The Evolution and Current Status of Korea's Foreign Aid
(units: US $ mn, %)
Source: Export-Import Bank of Korea, Ministry of Strategy and Finance of the Korean Gov't.
II. i. The Evolution and Current Status of Korea's Foreign Aid
Source: OECD Databases(http://www.oecd.org, 2008).
II. i. The Evolution and Current Status of Korea's Foreign Aid
Source: OECD Databases(http://www.oecd.org, 2008).
II. i. The Evolution and Current Status of Korea's Foreign Aid
Source: Export-Import Bank of Korea(http://www.koreaexim.go.kr, 2008).
II. i. The Evolution and Current Status of Korea's Foreign Aid
Source: Export-Import Bank of Korea(http://www.koreaexim.go.kr, 2008).
II. ii. Literature Review on Determinants of Development Aid
Source: KOICA(http://www.koica.go.kr, 2008).
II. ii. Literature Review on Determinants of Development Aid
Source: Cooray and Shahiduzzaman(2004), Lee(in Korean, 2005), Lho(in Korean, 2008).
III. i. Analysis model and data
□ The scope of analysis includes top 80 recipients of Korea's ODA from
1991 to 2005.
□ The model uses cross-section data, so panel data analysis is used
instead of ordinary least squares analysis.
III. ii. Discussion of Results
III. ii. Discussion of Results
III. ii. Discussion of Results
III. ii. Discussion of Results
IV. Summary and Conclusion
□ Korea’s ODA is most significantly affected by the amount of exports
from Korea to the recipient country.
□ After the foreign currency crisis was resolved in 1999, the amount of
FDI and loans shows a clear positive correlation.
□ The amount of exports and FDI are more clearly correlated with
ODA in the Asian region.
□ Energy production has not been a significant factor in determining
ODA, which stands in contrast to Japan's example.