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Japan’s ODA in Globally Integrated CLMV Economies
Tran Van Hoa,Kitti Limskul 한국경제연구학회 2017 Korea and the World Economy Vol.18 No.3
The CLMV (Cambodia, Laos, Myanmar and Vietnam) countries have globally integrated in recent years achieving high growth and increasing living standard that are attributable to expanded trade and FDI and especially ODA. To complement other studies on CLMV growth and development causality from an empirical perspective, the paper develops a new economic integration model of endogenous growth to study specifically the impact of Japan’s ODA on trade and growth in the CLMV countries. The model is then applied to each of the four CLMV countries to investigate the impact of Japan’s ODA, openness, and FDI on its growth and trade. The purpose is to provide useful input to support evidence-based policy analysis of ODA, development, trade, and FDI in these countries to meet United Nations 2015 sustainable development goals. The approach and findings are particularly relevant to new emerging donors in Asia such as China and Thailand and especially Korea where outgoing foreign aid has greatly increased since 1987 reaching USD1,915.25m in 2015.