Trends and the Determinants of Korea’s Official Development Aid (ODA) Allocation

This study is about the determinants and trends of the Republic of Korea’s Official Development Assistance (ODA). The study examines what factors drive Korea’s ODA allocation to recipient nations. Motivated by a need to enhance the effectiveness of the ODA allocation system, the study examines the role of various determinants – humanitarian, economic and political – which might explain allocation of Korean aid. The paper relies on twenty years’ of panel data from about 136 countries. In addition, structured interviews conducted with Korea International Cooperation Agency (KOICA) officers and Economic Development Cooperation Fund (EDCF) officers inform the study. The key findings are that Korea’s economic strategy is more likely to drive ODA towards recipient nations as opposed to humanitarian concerns. Aid to the largest recipients of Korean aid, that is, Vietnam, Bangladesh, and Iraq also was explained by Korea’s economic and political strategies rather than recipient nations’ needs.