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International Public Goods and the Case for Foreign Aid

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  • Jayaraman, Rajshri
  • Kanbur, Ravi

Abstract

In the presence of international public goods, donors are faced with two instruments whereby recipient utility may be altered -contributions towards the international public good and direct transfers (conventional foreign aid). The self-interested donor's optimal choice of transfer-contributions combinations will typically depend upon the public goods technology. Some technologies call for a corner solution, with either transfers or contributions set to zero, and others are characterised by interior solutions, where the donor's optimal strategy calls for a positive transfers and positive contributions. Whether or not the presence of an international public good strengthens the case for conventional foreign liid transfers is therefore not always obvious.

Suggested Citation

  • Jayaraman, Rajshri & Kanbur, Ravi, 1999. "International Public Goods and the Case for Foreign Aid," Working Papers 127684, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudawp:127684
    DOI: 10.22004/ag.econ.127684
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    References listed on IDEAS

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    Cited by:

    1. Alessandra Cepparulo & Luisa Giuriato, 2012. "Global Challenges and Country-Specific Responses through Aid Financing of Global Public Goods," Working Papers in Public Economics 156, Department of Economics and Law, Sapienza University of Roma.
    2. Vicary, Simon & Sandler, Todd, 2002. "Weakest-link public goods: Giving in-kind or transferring money," European Economic Review, Elsevier, vol. 46(8), pages 1501-1520, September.
    3. Hendrik P. van Dalen, 2007. "Global Aging and Economic Convergence: A Real Option or Still a Case of Science Fiction?," Tinbergen Institute Discussion Papers 07-051/1, Tinbergen Institute.
    4. Rübbelke, Dirk T.G., 2011. "International support of climate change policies in developing countries: Strategic, moral and fairness aspects," Ecological Economics, Elsevier, vol. 70(8), pages 1470-1480, June.
    5. D. Sirin Saracoglu & Terry L. Roe, 2004. "Rural-urban Migration and Economic Growth in Developing Countries," 2004 Meeting Papers 241, Society for Economic Dynamics.
    6. Ferrannini, Andrea & Barbieri, Elisa & Biggeri, Mario & Di Tommaso, Marco R., 2021. "Industrial policy for sustainable human development in the post-Covid19 era," World Development, Elsevier, vol. 137(C).
    7. Andreas Löschel & Dirk Rübbelke, 2014. "On the Voluntary Provision of International Public Goods," Economica, London School of Economics and Political Science, vol. 81(322), pages 195-204, April.
    8. Ravi KANBUR, 2002. "International Financial Institutions And International Public Goods: Operational Implications For The World Bank," G-24 Discussion Papers 19, United Nations Conference on Trade and Development.
    9. P. B. Anand, 2004. "Financing the Provision of Global Public Goods," The World Economy, Wiley Blackwell, vol. 27(2), pages 215-237, February.
    10. Kanbur, Ravi, 2002. "IFI's and IPG's: Operational Implications for the World Bank," Working Papers 127298, Cornell University, Department of Applied Economics and Management.
    11. Diana Sonntag, 2014. "FUNDING HIV‐VACCINE RESEARCH IN DEVELOPING COUNTRIES—WHAT IS WRONG WITH IAVI's RECOMMENDATION?," Health Economics, John Wiley & Sons, Ltd., vol. 23(2), pages 141-158, February.
    12. Sandler, Todd, 2001. "On financing global and international public goods," Policy Research Working Paper Series 2638, The World Bank.
    13. Lei, Vivian & Tucker, Steven & Vesely, Filip, 2007. "Foreign aid and weakest-link international public goods: An experimental study," European Economic Review, Elsevier, vol. 51(3), pages 599-623, April.
    14. Cepparulo, Alessandra & Giuriato, Luisa, 2009. "Aid Financing of Global Public Goods: an Update," MPRA Paper 22625, University Library of Munich, Germany.
    15. Khusrav Gaibulloev & Todd Sandler, 2012. "Aid for AIDS in Africa," Empirical Economics, Springer, vol. 43(3), pages 1171-1197, December.
    16. Hielscher, Stefan & Pies, Ingo, 2005. "Internationale öffentliche Güter: Ein neues Paradigma der Entwicklungspolitik?," Discussion Papers 2005-5, Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics.
    17. Buchholz Wolfgang & Heindl Peter, 2015. "Ökonomische Herausforderungen des Klimawandels," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 16(4), pages 324-350, December.

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