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Motivations for Bilateral Aid Allocation in Korea: Humanitarian, Commercial, or Diplomatic?

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  • Bokyeong Park

    (Kyung Hee University)

  • Hongshik Lee

    (Korea University)

Abstract

This study investigates Korea's motivations for foreign aid allocation, analyzing panel data from over 180 countries for the last 20 years. The results show that Korea's aid allocation reflects both recipient needs and Korea's own national interests but does not consistently consider aid effectiveness. Korean aid is also characterized by its use as an instrument of both summit diplomacy and resource security. In addition, its commercial motivations appear to have shifted over time, from export promotion to overseas investment support. Despite internal and external pressures, there is no obvious evidence that Korea's allocation rule converges with international guidelines that recommend greater consideration of recipient needs and aid effectiveness and less consideration of donor interests. © 2015 The Earth Institute at Columbia University and the Massachusetts Institute of Technology

Suggested Citation

  • Bokyeong Park & Hongshik Lee, 2015. "Motivations for Bilateral Aid Allocation in Korea: Humanitarian, Commercial, or Diplomatic?," Asian Economic Papers, MIT Press, vol. 14(1), pages 180-197, Winter/Sp.
    • Handle: RePEc:tpr:asiaec:v:14:y:2015:i:1:p:180-197
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    References listed on IDEAS

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    Cited by:

    1. Bobae Noh & Almas Heshmati, 2021. "Does official development assistance affect a donor’s exports? South Korea’s case," SN Business & Economics, Springer, vol. 1(10), pages 1-28, October.

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    More about this item

    Keywords

    Korea; foreign aid; panel data; aid allocation; summit diplomacy; resource security; commercial motivation; export promotion; overseas investment;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F30 - International Economics - - International Finance - - - General
    • P00 - Political Economy and Comparative Economic Systems - - General - - - General
    • I00 - Health, Education, and Welfare - - General - - - General

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