Abstract
Purpose: The purpose of this paper is to empirically analyze the impact of policy advisory ODA distributed by recipient countries on government capabilities from a sustainable development perspective.
 Originality: Sustainable development requires the capacity of the government to allocate resources efficiently and to design and operate the optimal policies to support it. In this regard, policy advisory ODA aims to contribute to the sustainable development by providing advice to developing country governments so that they can effectively formulate and implement policies. However, previous studies have focused on which factors ODA is distributed and how ODA contributes to development in terms of the total amount of ODA. By quantitatively measuring the policy advisory ODA, and focusing on its impact on government capacity in developing countries, this study draws more concrete academic and practical implications for development effectiveness.
 Methodology: This paper constructs a panel dataset of policy advisory ODA flows and government capacity for 152 developing countries from 2000 to 2021, and conducts a random effects panel regression analysis.
 Result: It was found that the relationship between the amount of policy advisory ODA a country receives and its government capacity is statistically significant: on average, the more policy advisory ODA a country receives, the better its government capacity is. The empirical analysis also shows that the impact of the policy advisory ODA on government capacity is greater in Fragile and Conflict-Affected Countries, where government capacity is relatively weak, and the Least Developed Countries and Lower-Middle Income Countries.
 Conclusion and Implication: This study has both academic and policy implications in that it empirically analyzes the impact of policy advisory ODA on recipient countries’ government capacity, an area that has been under-explored in the literature despite its importance. The empirical results draws attention to the importance and effectiveness of the policy advisory ODA.
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