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Global Challenges and Country-Specific Responses through Aid Financing of Global Public Goods

Alessandra Cepparulo and Luisa Giuriato ()

No 156, Working Papers from University of Rome La Sapienza, Department of Public Economics

Abstract: In 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 donors’ public finance constraints, openness to the rest of the world and preferences for domestic expenditures.

Keywords: Official Development Assistance (ODA); Global public goods; DAC donors (search for similar items in EconPapers)
JEL-codes: H41 F35 H87 (search for similar items in EconPapers)
Pages: 33
Date: 2012-11
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