Article
Leveraging ODA for Climate and Infrastructure Finance: A Systematic Literature Review of Sub -National Studies using TCCM and ADO Framework
Official Development Assistance (ODA) or Foreign Aid has remained one of the significant sources of development finance for economic growth and infrastructure development in developing economies. While a substantial part of literature has studied the relationship between ODA and economic growth at the national level, significantly less attention has been given to understanding the influence of ODA on development outcomes at the sub-national level. Given the rising flows of assistance at state level and increasing decentralisation of planning and implementation of development projects, understanding the impact of such flows at the sub national has become essential for designing more effective development interventions. This study conducts a systematic review of literature of state or sub-national studies on ODA flows published between 2000 till 2025. This review applies the Theory Context Characteristics and Methodology (TCCM) and Antecedents Decisions Outcomes (ADO) framework to examine the theoretical foundations, key methodologies adopted ad implementation mechanism and development outcomes of ODA financed infrastructure. Findings suggest that there has been a growing shift from aggregate studies too localised analysis of ODA effectiveness. Evidence establishes that ODA contributes positively to economic development when it is associated with effective institutions, governance, and absorptive capacity. The findings of the review suggest significant gaps in state or sub national level research in developing countries and proposes future research focusing on localised development outcomes due to ODA flows.