소득수준별 무상원조의 경제성장 효과: 한국의 중점협력 수원국들에서의 증거

Economic Growth Effects of Grants Based on Income Level: Evidence from the Major Recipient Countries of Korea

This paper analyzes empirically the economic growth effects of grants relative to income levelon grant-recipient countries of Korea. We conducted fixed effect model analysis of panel datafor 42 main development partners of Korea during the period from 1996 to 2013. Estimationresults of this analysis show that when policy condition is not considered, grants have apositive and significant effect on economic growth in the Least Developed Countries (LDCs),while grants do not have a significant effect on economic growth in the Middle IncomeCountries (MICs). When the expanded model is considered, grants have only a significantlypositive effect on economic growth in the Fragile Countries (Fragile-Cs). In particular, whenpolicy condition is considered, the positive economic growth effect of grants in the LDCs isrevealed to be conditional upon macroeconomic policy expressed in terms of inflation rate.However, there are no evidence of diminishing return to grants in all income level ofrecipient-countries.