This study uses spatial heterogeneity regime models to analyze the allocation of Korea’s official development assistance (ODA) as the international financial aid to 55 recipient countries, and examines whether recipient countries’ level of democra...
This study uses spatial heterogeneity regime models to analyze the allocation of Korea’s official development assistance (ODA) as the international financial aid to 55 recipient countries, and examines whether recipient countries’ level of democracy, distance from Korea, exports and imports, gross domestic product, global ODA, or global foreign direct investment have the spatial heterogeneity effects on the determinants of Korea’s ODAs to recipient countries. The empirical results show spatial dependence effects, and spatial heterogeneity across four regimes. Thus, the estimation of the determinants of Korea’s ODAs differs across Asia, Africa, Europe, America, and Oceania. Among the independent variables, the democracy level of recipient countries, distance from recipient countries, Korea’s export and import trade with ODA recipient countries, recipient countries’ GDP, and global ODA exhibited significant heterogeneity across regimes. Therefore, the spatial and spatial heterogeneity effects of the determinants of Korea’s ODA models are needed for more effective ODA policies.