Reproduced from the Quarterly Journal of International Politics, with kind permission of the authors and the Institute of International Studies, Tsinghua University
Determinants of Official Development Assistance in the Post-Cold War Period
He Fan is a Professor and Assistant Director of the Institute for World Economics and Polities at the Chinese Academy of Social Sciences.
Tang Yuehua is a PhD student in Department of Finance at Georgia State University.
* Corresponding author. Email: fncyttx@langate.gsu.edu
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Foreign development aid since the end of World War II has increased in significance within international relations as a way of developing strategic interests and improving the international environment. Foreign aid is an important policy tool for expanding nations’ influence upon international affairs and maintaining local and international economic stability, and has played a special role within China's foreign relations. Aid from China has grown in the recent years along with its economic development, and the corresponding change in the objectives, functions and manner of Chinese aid have given the country a higher standing within the sphere of worldwide development aid. Research into development aid policies and practices in developed countries is of help to China in establishing a more mature foreign development aid strategy.
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Review of Current Literature |
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The types of foreign aid that developed nations provide in the post-Cold War period include official development assistance (ODA), emergency relief, humanitarian assistance and military
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Levels of Post-Cold War International ODA |
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Determinants of ODA |
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Hypothesis 1: A State's ODA:GNI Ratio Relates to Its Level of Economic Development
Hypothesis 2: A State's ODA:GNI Ratio Relates to Its Economic Position
Hypothesis 3: A state's ODA:GNI Ratio Relates to Total Tax Revenue as a Proportion of GDP
Hypothesis 4: A state's ODA:GNI Ratio Relates to Domestic Public Social Expenditures as a Proportion of GDP
Hypothesis 5: A State's ODA:GNI Ratio Relates to Its Fiscal Surplus/Deficit as a Proportion of GDP
Hypothesis 6: A State's ODA:GNI Ratio Relates to Its Trade and Foreign Investment as a Proportion of GDP
Hypothesis 7: A State's ODA:GNI Ratio Relates to Historical Factors (e.g. Whether or Not a State Was Formerly a Colonial Power)
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A Model of the Determinants of ODA and Data Sources |
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Building a Model of Determinants of the Scale of ODA
Source of the Data
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Panel Data Analysis of the Model of ODA Determinants |
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Correlativity Analysis of the Variables
Hausman Test
Analysis of the Panel Data Estimation
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Conclusions and Recommendations for Policy |
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Empirical Analysis Conclusions
Implications for China