Jungeun KIM
Senior Assistant Professor, Graduate School of Media Design, Keio University, 4 Chome-1-1 Hiyoshi, Kohoku Ward, Yokohama, Kanagawa 223-0061, Japan; Co-first author.
elly@kmd.keio.ac.jp
Woosik YU
Assistant Professor, Department of International Commerce, Keimyung University, 1095 Dalgubeol-darero, Dalseo-gu, Daegu 42601, Republic of Korea; Corresponding and co-first author.
wsyu1224@gmail.com
Abstract
This study examines how different Official Development Assistance (ODA) profiles are associated with donor-side macroeconomic outcomes by comparing Japan and Sweden from 1960 to 2020. Rather than treating donor intent as directly observable, the paper uses Japan and Sweden as analytically contrasting cases: Japan is characterized by an ODA profile oriented toward economic diplomacy and regional development, while Sweden is characterized by a norm-oriented and welfare-centered ODA profile. Using annual macroeconomic data from the Penn World Table, OECD DAC statistics, and the World Development Indicators, we estimate country-specific growth regressions for GDP per capita growth, productivity growth, employment-rate growth, composite input growth, and export growth. The results show that Japan’s ODA is not significantly associated with income, productivity, employment, or export growth under the reported specification, whereas Sweden’s ODA is positively associated with income, productivity, and employment-rate growth, but not export growth. These findings should be interpreted as case-specific associations rather than causal evidence that one aid profile generates superior domestic returns. The contribution of the paper is to shift attention toward donor-side economic outcomes and to develop a bounded comparative framework for examining how aid profiles, rather than aid volume alone, may relate to long-term domestic economic patterns.
Keywords: Official Development Assistance, Donor-Side Economic Outcomes, Japan, Sweden, Aid Strategy, Comparative Political Economy
JEL classification: F35, O47, F43
Acknowledgement: The authors, Jungeun Kim and Woosik Yu, are co-first authors.
pp. 159-173