Efficiency Analysis of Official Development Assistance Provided by Korea

Hwang, Yun-Gi; Park, Soo-Hyun; Kim, Daecheol

doi:10.3390/su10082697

Cited by 8 publications

(7 citation statements)

References 20 publications

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“…This indicator was employed based on the empirical evidence from Lee et al (2019) who resorted to it to evaluate the effects of aid on quality of life. The ODA is a good indicator for aid as an element depicting international support for growth and development in growing economies (Hwang et al, 2018). Details of the variables are in Table 1.…”

Section: Methodsmentioning

confidence: 99%

Effects of good governance, sustainable development and aid on quality of life: Evidence from sub‐saharan Africa

Sarpong

Bein

2021

African Development Review

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The paper empirically investigates the effects of governance (GGov), official development assistance (ODA), sustainability [adjusted net savings (ANS)], and macroeconomic variables on the quality of life [human development index (HDI)] for selected sub-Saharan African (SSA) countries using the most recent data from 2000 to 2017. The study employed different panel techniques. The findings provide insightful and interesting empirical results that resonate with the magnitude of a significant of the role of GGov on ANS and HDI. Our study shows that GGov is important to improve HDI. Additionally, ANS has important implications on the well-being of human existence in SSA. In addition to these, this study found that macroeconomic variables such as trade openness and economic growth, wealth, and opportunity creation factors like urbanization and electrification rate are essential. Furthermore, empirical results revealed that ODA has a negative and significant association with HDI, which is in line with some of the existing literature. Our findings have several implications for organizations such as the World Bank, International Monetary Fund, and African Development Bank. This study serves as a policy instrument and guides in coordinating SSA on promoting HDI. 1 | INTRODUCTION Globally, the sub-Saharan African (SSA) region has the highest record of under-5 child mortality and the least life expectancy at birth of 52.5 years (Akobeng, 2017). The disparity between life expectancy of the developed and developing economies in this region is wide. The African continent is the poorest. For instance, the life expectancy of a Japanese person is 86.8 years as compared to a person living in Sierra Leone averaging 49.3 years for men and 50.8 years for women (Arimah, 2004; Bloom et al., 1998; Hanmer et al., 1999). Poverty is a crucial factor that militates against quality of life. A 2018 World Bank report indicates that there was an increase in the number of poor people in Africa from 280 million in the year 1990 to 330 million in 2012 (World Bank, 2018). About 50% of the population in Africa live on less than a dollar a day (Arimah, 2004). It is borne out of several social and economic factors, such as unemployment and lack of social support systems, which predispose people to all kinds of economic hardships including the inability to afford health care and basic necessities in life. These factors come together to affect people's quality of life. Many factors can affect the quality of life status and a country's ability to respond to the needs of its population. Among these factors are good governance (GGov), official aids, and a sustainable community. This paper examines the effects of sustainable development, GGov, aid, and macroeconomic variables on the quality of life for a sample of 26 SSA countries for the period 2000-2017. The estimation was done using different panel technique models. The main results show a positive relationship between GGov and quality of life. Also, sustainable development contributes positively to quali...

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Section: Methodsmentioning

confidence: 99%

Effects of good governance, sustainable development and aid on quality of life: Evidence from sub‐saharan Africa

Sarpong

Bein

2021

African Development Review

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“…Through these models, many elements and drives for determining a donor's ODA have been identified. Since the Cold War ended in the 1990s, there are no longer dominant factors in ideological characteristics, and more studies have been conducted on the determinants of ODA in terms of a realistic perspective [9]. The DI model is based on the fact that the international community recognizes the state as a rational actor of international politics and relations.…”

Section: Oda Determinantsmentioning

confidence: 99%

“…Thus, according to the theory of realism, the state decides the policies to maximize its economic and military interests. The DI model explains that the allocation of the ODA budget is pursued in the direction of expanding the economic, military, and diplomatic interests of donors [9][10][11][12]. The United States and Japan are representative countries whose aid can be explained by these models.…”

Section: Oda Determinantsmentioning

confidence: 99%

Searching for the Various Effects of Subprograms in Official Development Assistance on Human Development across 15 Asian Countries: Panel Regression and Fuzzy Set Approaches

2019

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Previous studies are limited in identifying the effectiveness of each country to seek sectoral support rather than integrated aid. However, it is hypothesized that sector-specific aid by Official Development Assistance (ODA) may be more effective than total aid. This study aims to identify the determinants of economic growth and the living standard levels in 15 Asian countries, focusing particularly on the effects of Official Development Assistance (ODA). In order to explore this research question, we have used two indexes: (1) the annual ODA grants to Korea, with aid type as the key independent variable; and (2) the human development index (HDI), to measure dependent variables from 2006 to 2016, across the 15 Asian countries. Special attention has been paid to understand which is more significant on human development, the effects of each type of aid program individually, and the whole amount of ODA assistance. We have constructed a panel model and a fuzzy set ideal type model to account in the data for qualitative attributes by recipient countries. We have found that the economic and social impacts of ODA on the basis of panel data are significant and that our instrumental variable (IV) method illustrates a statistically significant impact of the total ODA on the HDI of the recipient countries. By separating the total amount of ODA into economic and social sectors, we have found that specific programs of public service, medical care, and welfare are more likely to directly affect HDI. While the total amount of ODA still has a positive impact on HDI, education, health, and the public service field, aids also have significant effects on HDI. Although the effect of sector-specific aid in the water and sanitation field grant-aid is not significant in panel regression results, our fuzzy set method shows that, even if education aid is low, HDI is estimated to increase if the level of health and public service aid is high. Our empirical findings suggest that (1) sector-specific aid may be more effective than total aid with ineffective sub-aid programs and that (2) an optimally specific combination of various sub-programs in ODA may exist for each developing country.

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“…Firstly, we introduce the isotonicity test for checking the validity of the model specification. Specifically, we checked whether an increase in input indicators brought growth in outputs rather than a decrease in outputs (see Avkiran 2006;Adusei 2016;Hwang et al 2018;Jiang and He 2018). Input data for the DEA model must meet the isotonicity criteria, i.e., the level of outputs is at least the same, and does not fall when inputs increase.…”

Section: Dea-based Malmquist Productivity Indexmentioning

confidence: 99%

Nonparametric Approach to Evaluation of Economic and Social Development in the EU28 Member States by DEA Efficiency

Melecký

Staníčková

Hančlová

2019

JRFM

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Data envelopment analysis (DEA) methodology is used in this study for a comparison of the dynamic efficiency of European countries over the last decade. Moreover, efficiency analysis is used to determine where resources are distributed efficiently and/or were used efficiently/inefficiently under factors of competitiveness extracted from factor analysis. DEA measures numerical grades of the efficiency of economic processes within evaluated countries and, therefore, it becomes a suitable tool for setting an efficient/inefficient position of each country. Most importantly, the DEA technique is applied to all (28) European Union (EU) countries to evaluate their technical and technological efficiency within the selected factors of competitiveness based on country competitiveness index in the 2000–2017 reference period. The main aim of the paper is to measure efficiency changes over the reference period and to analyze the level of productivity in individual countries based on the Malmquist productivity index (MPI). Empirical results confirm significant disparities among European countries and selected periods 2000–2007, 2008–2011, and 2012–2017. Finally, the study offers a comprehensive comparison and discussion of results obtained by MPI that indicate the EU countries in which policy-making authorities should aim to stimulate national development and provide more quality of life to the EU citizens.

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Efficiency Analysis of Official Development Assistance Provided by Korea

Cited by 8 publications

References 20 publications

Effects of good governance, sustainable development and aid on quality of life: Evidence from sub‐saharan Africa

Effects of good governance, sustainable development and aid on quality of life: Evidence from sub‐saharan Africa

Searching for the Various Effects of Subprograms in Official Development Assistance on Human Development across 15 Asian Countries: Panel Regression and Fuzzy Set Approaches

Nonparametric Approach to Evaluation of Economic and Social Development in the EU28 Member States by DEA Efficiency

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