수원국의 ESG 요인이 공여국의 ODA 재원 배분에 미친 영향

Abstract

Purpose: This study aims to empirically analyze how ESG factors in recipient countries influence the donor’s ODA allocation.
 Originality: It analyses donors' ODA allocation behavior from an ESG perspective. It also explains the environmental factors of recipient countries, which have been increasingly emphasized since the UN SDGs agenda.
 Methodology: To analyze the impact of recipient countries' ESG factors on the donor’s ODA allocation, a standardized ESG index for each country is constructed. There are various unobservable factors which likely to influence the ODA allocation, hence time-varying and time-invariant fixed effects are incorporated. Meanwhile, the country-specific ESG indices are constructed using quantitative techniques.
 Result: ESG and SDG indicators demonstrate a statistically significant positive correlation. An analysis of the impact of ESG factors on the donor’s ODA allocation reveals that social factors played a significant role during 2005-2013. From 2014 to 2020, both social and environmental factors were statistically significant, while governance factors did not attain statistical significance.
 Conclusion and Implication: When examining the correlation between ESG and SDG indicators, a statistically significant positive correlation is observed. This suggests that ESG factors can act as a building block towards the achievement of SDGs in recipient countries. The ESG factors played varying roles over time. From 2005 to 2013, social factors were significant, while from 2014 to 2020, both social and environmental factors showed statistical significance. It can be explained by the paradigm shift in development cooperation. However, governance factors did not achieve statistical significance in any estimation methods, implying that, considerations of governance factors might have been relatively insufficient.