S-Space Graduate School of Public Administration (행정대학원) Dept. of Public Administration (행정학과) Theses (Master's Degree_행정학과)
The Impact of Official Development Assistance on Government Effectiveness: From the Perspective of Government Competitiveness
ODA가 정부효과성에 미치는 영향: 정부경쟁력 관점에서
- 행정대학원 행정학과
- Issue Date
- 서울대학교 행정대학원
- Aid Effectiveness; Government Effectiveness; Control of Corruption; Government Competitiveness; The Worldwide Governance Indicators(WGI)
- 학위논문 (석사)-- 서울대학교 행정대학원 : 행정학과(행정학전공), 2015. 8. 임도빈.
- The effectiveness of aid is still a contentious issue of debate. A few East Asian countries, such as South Korea, Hong Kong, Singapore, and Taiwan were notable for the extraordinary growth by government-led development strategy. By contrast, though the history of foreign aids has been more than 60 years, many developing countries are suffering from poverty. Given the four Asian tigers’ cases, this study focused on the role of government to achieve economic and social development, and made attempts to explore the relationship between aid dependence on government spending and government effectiveness, and the mediating effect of corruption from the perspective of government competitiveness.
The analysis draws upon a panel data of 82 recipient countries in the period 2004-2013. Government effectiveness and control of corruption are measured by the World Bank’s the Worldwide Governance Indicators(WGI), and the aid dependency ratio released by the World Bank is used for the independent variable. The analysis of the relationship between dependence on ODA to government expense and government effectiveness is examined through pooled OLS(Ordinary Least Squares). Moreover, the mediating role of the capacity to control corruption is verified by using Baron & Kenny’s steps and the Sobel’s test.
The findings of the study substantiate the hypothesis that dependence on ODA undermines government effectiveness in developing countries. In addition, it cannot be deduced that there are full or partial mediation effects of the control of corruption between ODA and government effectiveness.
To increase aid effectiveness, the recipient governments should exercise ownership over its developmental strategies. Considering cases in East Asian countries which have made rapid growth with government intervention, recipients must build its administrative capacity. To sum up, governments of developing countries need to strengthen their government competitiveness.