Abstract
Most research on Official Development Assistance (ODA) targeted the recipients, but this study examines the effect of ODA on the donor's exports to the recipient. To do this, a panel analysis was carried out with ODA and macroeconomic data on the United States and 33 other countries from 1999 to 2009. The results are summarized as follows: (1) The economic influence on the donor varies with the recipient's localization effort. (2) High-tech exports to the recipient are independent of ODA. (3) In medium-to-low-technology areas, ODA has a positive effect on exports to the recipient with low absorption efforts. (4) Both High-tech and LM-tech product exports decreases with the technological innovation efforts of recipients with high absorption efforts, while High-tech product exports only increases with that of recipients with low absorption efforts. These results indicate that a strategic approach for ODA program is more effective and useful to the donor's economy.
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