Foreign aid, government spending, and contributions toward public goods: Experimental evidence from the Philippines

• Main Authors: Montinola, Gabriella R., Taylor, Timothy W., Largoza, Gerardo L.
• Format: text
• Published: Animo Repository 2020
• Subjects: Crowding out (Economics) > Philippines; Philippines > Appropriations and expenditures; Expenditures, Public; Economic assistance > Philippines; Economics
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/2686
• Institution: De La Salle University

Scholars have long argued that government spending crowds out contributions to public goods through taxes or through nonprofit organizations. In developing countries where public goods are often financed by foreign donors, foreign aid may have a similar inhibiting effect. Aid, it is argued, leads ci...