Global Challenges and Country-Specific Responses through Aid Financing of Global Public Goods
AbstractIn this paper we revisit the impact of global public goods (GPGs) in Official Development Assistance budgets using panel data covering the DAC countries during the period 1973-2009. Our findings reveal a weak crowding-out effect of traditional aid and an increasing financing to weakest-link technology GPGs by rich countries aiming at avoiding sub-optimal levels of provision in strategic sectors. Searching for the determinants of GPG-related aid, we find a significant role played by variables expressing donorsâ€™ public finance constraints, openness to the rest of the world and preferences for domestic expenditures.
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Bibliographic InfoPaper provided by University of Rome La Sapienza, Department of Public Economics in its series Working Papers with number 156.
Date of creation: Nov 2012
Date of revision:
Official Development Assistance (ODA); Global public goods; DAC donors;
Find related papers by JEL classification:
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- F35 - International Economics - - International Finance - - - Foreign Aid
- H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
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