Cambodia Development Institute

CDI-2013-03-005

Official Development Assistance (ODA) and Cambodia’s Economic Growth



Say Sivutha
Royal University of Phnom Penh

Chrea Sunnarith
Royal University of Phnom Penh

Lim Oun
Royal University of Phnom Penh


February 13, 2013
 

Official Development Assistance (ODA) and Cambodia’s Economic Growth
Say Sivutha, Chrea Sunnarith, Lim Oun
February 13, 2013


Abstract

This paper is designed to study the relations between official development assistance (ODA) and Cambodia’s economic growth. The paper tests the hypothesis that official development aid (ODA) to Cambodia is low relative to other countries in the region. The empirical data does support this proposition. Cambodia does lag behind Vietnam in terms of ODA from the combination of bilateral and multilateral donors. This paper further ascertains the second hypothesis that ODA to Cambodia is not really effective in helping the country’s economic growth. The investigation is done by using three main components of GDP to found their interrelations with ODA. The results do reveal the second hypothesis is wrong because there is certainly effectiveness of ODA to economic growth of Cambodia.