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Government spending: Is development assistance harmonised with other budgets?

Research output: Contribution to journalJournal article

Published
<mark>Journal publication date</mark>1/11/2012
<mark>Journal</mark>Journal of Policy Modeling
Issue number6
Volume34
Number of pages11
Pages (from-to)921-931
Publication statusPublished
Early online date9/06/12
Original languageEnglish

Abstract

This paper explores the way governments rely on budgets. Budgets are classified with reference to functions (e.g. defence, education, etc.), but expenditure from one budget (e.g. the overseas budget) can prove as effective as expenditure from another budget (e.g. the environment budget) when pursuing a specific policy goal. Are donor countries internalising spillovers by harmonising overseas aid spending with other budgetary expenditures? An empirical analysis of OECD countries (between 1990 and 2005) suggests that they rely systematically on a preferred portfolio of budgets.