earticle

영어

South Korea has dramatically transitioned from an aid recipient to a donor nation over the past five decades, showcasing one of the most notable economic transformations globally. Similarly, the People’s Republic of China has emerged as a new example of this shift. This study explores the causal impact of Official Development Assistance (ODA) on trade volumes between donor and recipient countries through a comparative analysis on South Korea and mainland China. We constructed a panel dataset comprising 46 countries spanning from 2013 to 2019 and conducted a quantitative panel regression analysis. The ODA provided by South Korea and China has been shown to have a positive impact on both exports to and imports from recipient countries. Specifically, South Korea’s ODA has had a more significant positive effect on its exports and imports with recipient countries compared to China’s ODA. In particular, the impact on increasing exports through South Korea’s ODA has been relatively greater than the impact on increasing imports. Conversely, China’s ODA has shown a greater effect in boosting imports than in increasing exports. Additionally, regional analysis indicates that in both South Korea and China, ODA has a larger positive impact on trade flows with Asian and Latin American countries compared to African countries.