How does Japanese ODA really contribute to economic growth for ASEAN countries?

Hien Phuc Nguyen1, Xuyen Le Thi Kim1, Anh Ngoc Quang Huynh2, Ulrike Reisach3

Tóm tắt

Japan has provided ODA funding for promoting economic development in ASEAN countries for a long time. This study aims to verify how Japan’s ODA contributes to economic growth of the ASEAN countries during the period of 2008-2020. Based on the Cobb-Douglas production function, we build a model to estimate the effects of the ODA funding on economic growth. The results show that the ODA exhibits a significantly positive relationship with economic growth of these countries. A one percent increase in the ODA inflow contributes to the economic growth by 0.226 percent. Capital and labor are important factors driving the economic growth while FDI has a negligible impact.

Từ khóa

#Japanese ODA #Economic growth #ASEAN countries

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