The data of the thesis was collected including 68 developing countries in the world in the period from 1996 to 2016. The selection of developing countries and the range of 1996-2016 time comes from World Bank data set, since 1996 data for all selected countries in the new full study and the latest updated data up to 2016.
3.2 Research models
In order to quantitatively analyze the impact of official development assistance on economic growth in developing countries, the thesis inherits Lucas's (1988) research model to develop research models. of the thesis are as follows:
The first research objective: to analyze the impact of official development assistance (ODA) on economic growth in developing countries. To address this research goal, the author examines both static and dynamic table form models.
Model 1: analyzing the impact of official development assistance (ODA) on static table economic growth:
GDPit = β1+ β2ODAit + β3INVESTit + β4LABORit + β5INFit + β6OPENit + β7INFRASit + αi + uit (1)
Model 2: analyzing the impact of official development assistance (ODA) on dynamic economic growth:
GDPit = β1+ β2GDPit-1 + β3ODAit + β4INVESTit + β5LABORit + β6 INFit + β7OPENit + β8INFRASit + αi + uit (2)
The second research objective: to analyze the impact of official development assistance (ODA) on economic growth in the case of Vietnam. To solve this research goal, the author put into the model (2) VN dummy variable. The
variable VN receives value 1 in the case of Vietnam and receives zero in the case of another country.
Model 3: analyzing the impact of official development assistance (ODA) on economic growth in Vietnam:
GDPit = β1+ β2GDPit-1 + β3ODAit + β4INVESTit + β5LABORit + β6 INFit + β7OPENit + β8INFRASit + β9(ODAit VNi) + αi + uit (3)
The third research objective: to consider the impact of official development assistance (ODA) on linear or nonlinear economic growth. To solve this research goal, the author included the model (2) of ODA2 variable.
Model 4: examining the impact of official development assistance (ODA) on economic growth in developing countries is linear or nonlinear.
GDPit = β1+ β2GDPit-1 + β3ODAit + β4ODA2it + β5INVESTit + β6LABORit + β7 INFit + β8OPENit + β9INFRASit + αi + uit (4)
The fourth research objective: to study the impact of official development assistance (ODA) on economic growth in terms of the quality of public governance of developing countries. The factor of public administration quality is measured through the average of six indexes in the "global governance" index from the World Bank including: controlling corruption, government effectiveness, political stability, comply with laws, quality of law, voice and accountability. To solve this research goal, the author included the model (4) ODAit × GOVit interactive variable.
Model 5: studying the impact of official development assistance (ODA) on economic growth in terms of public governance quality of developing countries:
GDPit = β1+ β2GDPit-1 + β3ODAit + β4ODA2it + β5(ODAit GOVit) + β6INVESTit + β7LABORit + β8 INFit + β9OPENit + β10INFRASit + αi + uit (5)
The fifth research objective: to study the impact of official development assistance (ODA) on economic growth in terms of the quality of public governance
and the ability to absorb capital of developing countries. The factor of absorption capacity of the host country receiving ODA is measured through human development index (HDI). To solve this research goal, the author included the model (4) ODAit × GOVit × HDIit interactive variable.
Model 6: studying the impact of official development assistance (ODA) on economic growth in terms of public governance and capital absorption of developing countries:
GDPit = β1 + β2GDPit-1 + β3ODAit + β4ODA2it + β5(ODAit GOVit HDIit) + β6INVESTit + β7LABORit + β8 INFit + β9OPENit + β10INFRASTit + αi + uit (6)
The sixth research objective: to study the impact of official development assistance (ODA) on economic growth in the context of corruption management quality of developing countries. The quality of governance corruption is measured through corruption governance index (CORRUPT). To solve this research goal, the author included the model (4) ODAit × CORRUPTit interactive variable
Model 7: studying the impact of official development assistance (ODA) on economic growth in the context of corruption management quality of developing countries:
GDPit = β1 + β2GDPit-1 + β3ODAit + β4ODA2it + β5(ODAit CORRUPTit) + β6INVESTit + β7LABORit + β8 INFit + β9OPENit + β10INFRASTit + αi + uit (7) Inside:
GDPit: is a variable of economic growth, measured by the growth rate of GDP per capita of country i by year t.
GDPit-1: is a variable of economic growth, measured by the growth rate of GDP per capita of country i by year t - 1.
ODAit: is a source of official development assistance capital, measured by the ratio of ODA / GDP of the country i according to year t.
INVESTit: is the total social investment capital, measured by the ratio of INVEST / GDP of country i by year t.
LABORit: is a variable representing the human resource factor, expressing the rate of labor growth, measured by the ratio of the labor force to the population in a country i by year t.
INFit: is the inflation variable, measured by the annual consumer price index of country i by year t.
OPENit: is a trade openness measure, representing a country's open-door policy, determined by the ratio of the total import-export of goods and services to the country's GDP i by year t.
INFRASTit: is the infrastructure variable, representing the development of infrastructure in a country. This variable can be measured in many different ways.
In this study, the author uses the target of fixed telephone subscribers over 100 people and this variable is considered to have an impact on economic growth (Asiedu , 2002; Ancharaz, 2003; Kevin, 2005; Bissoon, 2012).
GOVit: public governance index, representing the level of efficiency in public administration of the country receiving official development assistance (ODA). The index receives a value of 0 to 1, an index equal to 1 when the state administers the best performance.
HDIit: human development index, representing the level of absorption capacity of the country receiving official development assistance (ODA). The index takes a value from 0 to 1, an index of 1 when the country has the highest level of human development.
CORRUPTit: Corruption governance index, representing the level of effectiveness in the governance of corruption in the country receiving official development assistance (ODA). The index takes value from 0 to 1, the index is equal to 1 when the country administers corruption best.
αi: showing the unique characteristics between countries unchanged over time uit: typical error of the model.
i: index representing the country, i = (1, 68)
t: index representing the observation time (from 1996 to 2016)