Abstract
The study examines the impact of official development assistance (ODA) in constructing road transport infrastructure on Vietnam’s economic growth. The authors select gross domestic product (GDP) to represent economic growth and test the influence of ODA in constructing road traffic infrastructure on Vietnam's GDP. Based on the references and analysis of previous studies, the authors propose an impact assessment model of ODA in constructing road transport infrastructure, Foreign direct investment (FDI), Domestic Investment (VDT) and Labor Force (Labor) to economic growth through GDP as a dependent variable. The regression results show that the ODA had a positive impact on GDP. Moreover, ODA plays an important role in constructing road transport infrastructure on Vietnam’s economic growth.
Highlights
Supporting developing and underdeveloped countries for socio-economic development has become a global problem along with the development of the world economy
Many econometric studies assessed the impact of official development assistance (ODA) on economic growth such as Driffiel and Jones (2013) have used array data regression to test for developing countries with independent variables: ODA (Development Assistance official), Foreign direct investment (FDI) (Foreign Direct Investment), REM (Remittances), POP (Population), and gross domestic product (GDP) dependent variable
We propose an impact assessment model of ODA (Official development assistance in road traffic infrastructure), FDI (Foreign direct investment), VDT (Domestic investment) and labor force (Labor) (Labor Force) to economic growth through the dependent variable of Vietnam’s GDP
Summary
Supporting developing and underdeveloped countries for socio-economic development has become a global problem along with the development of the world economy. The underdeveloped infrastructure in general and the transport sector in particular in Vietnam is one of the major limitations that worries investors. This will greatly influence foreign investment capital attraction into Vietnam. Due to limitation State budget limitation, the majority of investment capital for infrastructure development is mobilized from abroad (mainly ODA loans), domestic and foreign private investors. In the context of the limited state budget, economic difficulties, less access to ODA source when Vietnam is above the low-middleincome countries, there is a need to seriously re-evaluate managing and using ODA process in road transport in order to make long-term development plans
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