Hostname: page-component-cd9895bd7-dzt6s Total loading time: 0 Render date: 2024-12-27T02:43:38.524Z Has data issue: false hasContentIssue false

The Disbursement Pattern of Japanese Foreign Aid: A Reappraisal

Published online by Cambridge University Press:  24 March 2016

Abstract

Three perspectives on the determinants of Japan's official development assistance (ODA) program are often represented as distinct, valid explanations of the aid program. Yet few studies have attempted to simultaneously test the hypotheses generated from all three perspectives in a global study of Japanese aid flows. This study seeks to improve the understanding of the Japanese ODA program by addressing some of the gaps in the existing literature. Providing a comprehensive analysis, the article investigates the effects of different political and economic variables on Japanese aid disbursement in eighty-six countries in Africa, Asia, Latin America, and the Middle East from 1979 to 2002. The findings of the study make several contributions to the literature. First, the results provide strong support for the claim that humanitarian concerns, as measured by poverty and human rights conditions in recipient countries, are important determinants of aid allocation. Second, although much of the previous literature has hypothesized that Japan's aid program seeks to promote Japan's economic interests, little empirical support for this view is found in the present study. Likewise, the disbursement pattern of ODA was associated with only a limited number of US security interests; US economic interests are shown to have no effect on ODA.

Type
Articles
Copyright
Copyright © East Asia Institute 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Achen, Christopher H. 2000. “Why Lagged Dependent Variables Can Suppress the Explanatory Power of Other Independent Variables.” Paper presented at the Annual Meeting of the Political Methodology Section of the American Political Science Association, UCLA, July 20–22.Google Scholar
Akiko, Fukushima. 2000. “ODA as a Japanese Foreign Policy Tool.” In Japanese Foreign Policy Today: A Reader, ed. Inoguchi, Takasi and Jain, Purnendra, 152174. New York: Palgrave.CrossRefGoogle Scholar
Alesina, Alberto, and Dollar, David. 2000. “Who Gives Aid to Whom and Why?Journal of Economic Growth 5, 1: 3363.CrossRefGoogle Scholar
Anderson, Stephen J. 1993. “Latin America: Japan's Complementary Strategy.” In Japan's Foreign Aid: Power and Policy in a New Era, ed. Koppel, Bruck and Orr, Robert. Boulder: Westview Press.Google Scholar
Apodaca, Clair, and Stohl, Michael. 1999. “United States Human Rights Policy and Foreign Assistance.” International Studies Quarterly 43, 1: 185198.CrossRefGoogle Scholar
Arase, David. 1994. “Public-Private Sector Interest Coordination in Japan's ODA.” Pacific Affairs 67, 2: 171199.CrossRefGoogle Scholar
Arase, David. 2005. “Japan's and the United States' Bilateral ODA Programs.” In Japan's Foreign Aid: Old Continuities and New Directions, ed. Arase, David. New York: Routledge.Google Scholar
Beck, Nathaniel, and Katz, Jonathan N. 1995. “What to Do (and Not to Do) with Time-Series Cross-Section Data.” American Political Science Review 89, 3: 634647.CrossRefGoogle Scholar
Beck, Nathaniel, and Katz, Jonathan N. 1996. “Nuisance vs. Substance: Specifying and Estimating Time-Series Cross-Section Models.” Political Analysis 6, 1: 136.CrossRefGoogle Scholar
Beck, Nathaniel, and Katz, Jonathan N. 2004. “Time-Series Cross-Section Issues: Dynamics, 2004.” Working Paper, Department of Politics, New York University.Google Scholar
Beck, Nathaniel, and Katz, Jonathan N. 2007. “Random Coefficient Models for Time-Series Cross-Section Data: Monte Carlo Experiments.” Political Analysis 15, 2: 182195.CrossRefGoogle Scholar
Brown, Charles C, and Moffitt, Robert. 1983. “The Effect of Ignoring Heteroscedasticity in the Tobit Model.” NBER Technical Paper No. 27. Cambridge, MA: National Bureau of Economic Research.Google Scholar
Calder, Kent E. 1988. “Japanese Foreign Economic Policy Formation: Explaining the Reactive State.” World Politics 40, 2: 517541.CrossRefGoogle Scholar
Central Intelligence Agency. Various years. CIA World Fact Book. Washington, DC: CIA. Available at www.cia.gov/cia/publications/factbook.Google Scholar
Chan, Steve. 1992. “Humanitarianism, Mercantilism, or Comprehensive Security? Disbursement Patterns of Japanese Foreign Aid.” Asian Affairs 19, 2: 317.CrossRefGoogle Scholar
Cingranelli, David Louis, and Gomez, Simon Peter. 1996. “Progressive Aid to Latin America?” In Foreign Aid Toward the Millennium, ed. Hook, Steven W. Boulder: Lynne Rienner.Google Scholar
Cooray, N. S., and Shahiduzzaman, M. D. 2004. “Determinants of Japanese Aid Allocation: An Econometric Analysis.” International University of Japan Research Institute Working Paper No. 2004-4, International Development Series. Niigata, Japan.Google Scholar
Development Assistance Committee, OECD. 1977–2000. Geographical Distribution of Financial Flows to Aid Recipients. Paris: OECD.Google Scholar
Development Assistance Committee, OECD. Various years. DAC Statistical database. Net ODA from Japan to Various Recipients. Available at www.oecd.org/scripts/cde/CDE-DAC.Google Scholar
Freedom House. 2004. Annual Survey of Freedom Country Scores 1972/73-2002/2003. Available at www.freedomhouse.org/rankings.pdf.Google Scholar
Furuoka, Fukitaka. 2005. “Human Rights Conditionality and Aid Allocation: Case Study of Japanese Foreign Aid Policy.” Perspectives on Global Development and Technology 4, 2: 125146.CrossRefGoogle Scholar
Gibney, Mark. 2004. Political Terror Scale dataset. Machine readable dataset with explanatory notes. Asheville: University of North Carolina.Google Scholar
Grant, Richard. 1998. “Japan: A Foreign Aid Superpower.” In The Global Crisis in Foreign Aid, ed. Grant, Richard and Nijman, Jan. Syracuse, NY: Syracuse University Press.Google Scholar
Gujarati, Damodar N. 1988. Basic Econometrics. 2nd ed. New York: McGraw-Hill Education.Google Scholar
Hansen, Richard. 2004. “‘Unsinkable Aircraft Carrier’ Steams to Iraq.” Asia Times, February 4. Available at www.atimes.com/atimes/Japan/FB07Dh09.html.Google Scholar
Hirata, Keiko. 2002. Civil Society in Japan: The Growing Role of NGOs in Tokyo's Aid Development Policy. New York: Palgrave Macmillan.CrossRefGoogle Scholar
Hook, Steven W., and Zhang, Guang. 1998. “Japan's Aid Policy Since the Cold War: Rhetoric and Reality.” Asian Survey 38, 1: 10511066.CrossRefGoogle Scholar
Horisaka, Kotaro. 1993. “Japan's Economic Relations with Latin America.” In Japan, the United States, and Latin America, ed. Stallings, Barbara and Székely, Gabriel. London: Macmillan.Google Scholar
Inter-American Development Bank. 1993. Foreign Direct Investment in Latin America and the Caribbean: An Overview of Flows from Europe, Japan, and the United States, 1979–1990. Madrid and Paris: Inter-American Development Bank and Institute for European-Latin American Relations.Google Scholar
International Monetary Fund. 1995. International Financial Statistics Yearbook. Washington, DC: IMF.Google Scholar
International Monetary Fund. Various years. Direction of Trade Statistics. Washington, DC: IMF.Google Scholar
International Monetary Fund. Various years. Country Pages—for Structural Adjustment and IMF Activities. Available at www.imf.org/external/NP/PFP/.Google Scholar
Inukai, Ichiro. 1993. “Why Aid and Why Not? Japan and Sub-Saharan Africa.” In Japan's Foreign Aid: Power and Policy in a New Era, ed. Koppel, Bruce M. and Orr, Robert M. Boulder: Westview Press.Google Scholar
Japan International Cooperation Agency (JICA). 1998. Participatory Development and Good Governance: Report of the Aid Study Committee. Tokyo: JICA.Google Scholar
Japan International Cooperation Agency (JICA). 2004. Guidelines for Environmental and Social Considerations. Tokyo: JICA.Google Scholar
Japan Statistical Yearbook. 2004. “General Disbursements (F.Y. 1963–2004).Available at www.stat.go.jp/data/nenkan/zuhyou/y0503000.xls.Google Scholar
Katada, Saori N. 1997. “Two Aid Hegemons: Japanese-U.S. Interaction and Aid Allocation to Latin America and the Caribbean.” World Development 25, 6: 931945.CrossRefGoogle Scholar
Katada, Saori N. 2002. “Japan's Two-Track Aid Approach: The Forces Behind Competing Triads.” Asian Survey 42, 2: 320342.CrossRefGoogle Scholar
Katada, Saori N., and McKeown, Timothy C. 1998. “Aid Politics and Electoral Politics: Japan, 1970–1992.” International Studies Quarterly 42, 3: 591600.CrossRefGoogle Scholar
Katsumata, Hiro. 2006. “Why Does Japan Downplay Human Rights in Southeast Asia?International Relations of the Asia Pacific 6, 2: 249267.CrossRefGoogle Scholar
Kegley, Charles W. 1993. “The Neoidealist Moment in International Studies? Realist Myths and New International Realities.” International Studies Quarterly 37, 2: 131146.CrossRefGoogle Scholar
Marshall, Monty G., and Jaggers, Keith. 2004. Polity IV: Political Regime Characteristics and Transition. Machine-readable dataset. Available at www.bsos.umd.edu/cidcm/inscr/polity.Google Scholar
Meernik, James, Krueger, Eric L., and Poe, Steven C. 1998. “Testing Model of U.S. Foreign Policy: Foreign Aid During and After the Cold War.” Journal of Politics 60, 1: 6385.CrossRefGoogle Scholar
Miyashita, Akitoshi. 1999. “Gaiatsu and Japan's Foreign Aid: Rethinking the Reactive-Proactive Debate.” International Studies Quarterly 43, 4: 695732.CrossRefGoogle Scholar
Miyashita, Akitoshi. 2003. Limits to Power: Asymmetric Dependence and Japanese Foreign Aid Policy. Lanham, MD: Lexington Books.Google Scholar
Miyashita, Akitoshi. 2006. “Where Do Norms Come From? Foundations of Japan's Post war Pacifism.” International Relations of the Asia-Pacific 7, 1: 99120.CrossRefGoogle Scholar
MOFA (Ministry of Foreign Affairs, Government of Japan). 1992. “Japan's Official Development Assistance Charter: Cabinet Decisions, June 30, 1992.Available at www.mofa.go.jp/policy/oda/summary/1999/ref1.html.Google Scholar
MOFA (Ministry of Foreign Affairs, Government of Japan). 1995. Japan's Official Development Assistance: Annual Report. Tokyo: MOFA.Google Scholar
MOFA (Ministry of Foreign Affairs, Government of Japan). 2002. “Japan's Measures in Response to the Terrorist Attacks in the United States—Agreement Concerning Debt Rescheduling for Pakistan; Senior Officials Meeting on Reconstruction Assistance to Afghanistan.Available at www.mofa.go.jp/region/n-america/us/terro0109/index.html.Google Scholar
MOFA (Ministry of Foreign Affairs, Government of Japan). 2003. “Revisions of Japan's Official Development Assistance Charter(unofficial translation), August 29.Google Scholar
MOFA (Ministry of Foreign Affairs, Government of Japan). 2004. Japan's Official Development Assistance Charter (slide presentation). Tokyo: Economic Cooperation Bureau.Google Scholar
MOFA (Ministry of Foreign Affairs, Government of Japan). 2006. Japan's Official Development Assistance: White Paper. Tokyo: International Cooperation Bureau.Google Scholar
Neumayer, Eric. 2003. “Do Human Rights Matter in Bilateral Aid Allocation? A Quantitative Analysis of 21 Donor Countries.” Social Science Quarterly 84, 3: 650–566.CrossRefGoogle Scholar
News Database (various years). Database of newspaper articles in the New York Times, Los Angeles Times, Washington Post, Wall Street Journal, and Christian Science Monitor . Information Access Company.Google Scholar
Okuizumi, Kaoru. 1995. “Implementing the ODA Charter: Prospects for Linking Japanese Economic Assistance and Human Rights.” New York University Journal of International Law and Politics 27, 2: 367409.Google Scholar
Orr, Robert M. 1990. The Emergence of Japan's Foreign Aid Power. New York: Columbia University Press.CrossRefGoogle Scholar
Poe, Steven C. 1992. “Human Rights and Economic Aid Allocation Under Ronald Reagan and Jimmy Carter.” American Journal of Political Science 36, 1: 147167.CrossRefGoogle Scholar
Rix, Alan. 1993. “Managing Japan's Aid: ASEAN.” In Japan's Foreign Aid: Power and Policy in a New Era, ed. Koppel, Bruce and Orr, Robert. Boulder: Westview Press.Google Scholar
Rix, Alan. 1996. “Japan's Emergence as a Foreign-Aid Superpower.” In Foreign Aid Toward the Millennium, ed. Hook, Steven W. Boulder: Lynne Rienner.Google Scholar
Sato, Yasunobu. 1994. “New Directions in Japanese Foreign Policy: Promoting Human Rights and Democracy in Asia: ODA Perspective.” In The Politics of Democratization, ed. Friedman, Edward. Boulder: Westview Press.Google Scholar
Schoppa, Leonard J. 1997. Bargaining with Japan: What American Pressure Can and Cannot Do. New York: Columbia University Press.Google Scholar
Schraeder, Peter J., Hook, Steven W., and Taylor, Bruce. 1998. “Clarifying the Foreign Aid Puzzle: A Comparison of American, Japanese, French, and Swedish Aid Flows.” World Politics 50, 2: 294323.CrossRefGoogle Scholar
Sivo, Stephen, Fan, Xitao, and Witta, Lea. 2005. “The Biasing Effects of Unmodeled ARMA Time Series Processes on Latent Growth Model Estimates.” Structural Equation Modeling 12, 2: 215231.CrossRefGoogle Scholar
Smith, Peter H. 2000. Talons of the Eagle: Dynamics of U.S.-Latin American Relations. 2nd ed. Oxford: Oxford University Press.Google Scholar
Soderberg, Marie. 2006. “Can Japanese Foreign Aid to North Korea Create Peace and Stability?Pacific Affairs 79, 3: 433454.CrossRefGoogle Scholar
Stein, Howard. 1998. “Japanese Aid to Africa: Patterns, Motivation and the Role of Structural Adjustment.” Journal of Development Studies 35, 2: 2753.CrossRefGoogle Scholar
Stimson, James. 1985. “Regression in Space and Time: A Statistical Essay.” American Journal of Political Science 29, 4: 914947.CrossRefGoogle Scholar
Sudo, Sueo. 2002. The International Relations of Japan and South East Asia: Forging a New Regionalism. London: RoutledgeCurzon.Google Scholar
Sunaga, Kazuo. 2004. “The Reshaping of Japan's Official Development Assistance (ODA) Charter.” Foundation for Advanced Studies on International Development (FASID) Discussion Paper on Development Assistance No. 3. November. Tokyo: FASID.Google Scholar
Takamine, Tsukasa. 2006. “The Political Economy of Japanese Foreign Aid: The Role of Yen Loans in China's Economic Growth and Openness.” Pacific Affairs 79, 1: 2948.CrossRefGoogle Scholar
Tuman, John P., and Ayoub, Ayoub S. 2004. “The Determinants of Japanese Official Development Assistance in Africa: A Pooled Time Series Analysis.” International Interactions 30, 1: 4559.CrossRefGoogle Scholar
Tuman, John P., and Emmert, Craig F. 1999. “Explaining Japanese Foreign Direct Investment in Latin America, 1979–1992.” Social Science Quarterly 80, 3: 539555.Google Scholar
Tuman, John P., Emmert, Craig F., and Sterken, Robert E. 2001. “Explaining Japanese Aid Policy in Latin America: A Test of Competing Theories.” Political Research Quarterly 54, 1: 87101.CrossRefGoogle Scholar
Tuman, John P., and Strand, Jonathan R. 2006. “The Role of Mercantilism, Humanitarianism, and Gaiatsu in Japan's ODA Programme in Asia.” International Relations of the Asia Pacific 6, 1: 6180.CrossRefGoogle Scholar
US Department of Defense, Washington Headquarter Service, Directorate for Information Operations and Reports. 1977-2004. Active Duty Military Personnel Strengths by Regional Area and By Country. Available at http://web1.whs.osd.mil/mmid/military/history.Google Scholar
US Department of State. Various years, 1985–2002. Patterns of Global Terrorism Reports. Available at www.state.gov/s/ct/rls/pgtrpt.Google Scholar
Vogel, Ezra. 1992. “Japanese-American Relations After the Cold War: Immobility Democracy?Daedalus 121, 4: 3560.Google Scholar
Watson, Alexender F. 1996. “The United States and Japan: Mutual Interests and Cooperation in Latin America.” U.S. State Department of State Dispatch 1: 6265.Google Scholar
World Bank. 2007. World Development Indicators. Online database.Google Scholar
Yasutomo, Dennis T. 1986. The Manner of Giving: Strategic Aid and Japanese Foreign Policy. Lanham, MD: Lexington Books.Google Scholar