Berens, Sarah A. (2016). Crowding Out or Welfare Promotion? How Foreign Aid Affects Social Expenditures in Latin American Welfare Systems. Soc. Policy Adm., 50 (3). S. 353 - 379. HOBOKEN: WILEY. ISSN 1467-9515

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Abstract

Foreign assistance constitutes a significant share of government revenue in many low- and middle-income economies and is targeted at poverty reduction and the promotion of social and economic well-being. This study therefore examines fiscal responses by Latin American welfare states to the inflow of such aid. As a form of external non-tax revenue, aid can function as a substitution for public welfare expenditure, with a crowding out effect being the likely outcome. This article investigates whether overall aid and aid that is particularly targeted at the social sector substitutes public welfare provision and, if so, whether it also substitutes its function. A time-series cross-section analysis of 19 Latin American countries for the period 1980-2008 provides limited support for the assumption that foreign aid payments influence the welfare budget. It is only the health care sector in middle-income countries which experiences a small decrease in expenditures. Social security and education expenditures are not affected.

Item Type: Journal Article
Creators:
CreatorsEmailORCIDORCID Put Code
Berens, Sarah A.UNSPECIFIEDUNSPECIFIEDUNSPECIFIED
URN: urn:nbn:de:hbz:38-278129
DOI: 10.1111/spol.12109
Journal or Publication Title: Soc. Policy Adm.
Volume: 50
Number: 3
Page Range: S. 353 - 379
Date: 2016
Publisher: WILEY
Place of Publication: HOBOKEN
ISSN: 1467-9515
Language: English
Faculty: Unspecified
Divisions: Unspecified
Subjects: no entry
Uncontrolled Keywords:
KeywordsLanguage
PANEL-DATA ANALYSIS; DEMOCRACY; POLITICS; GLOBALIZATION; STATE; INSTITUTIONS; INVESTMENT; INEQUALITY; PROVISION; COUNTRIESMultiple languages
Development Studies; Public Administration; Social Issues; Social WorkMultiple languages
Refereed: Yes
URI: http://kups.ub.uni-koeln.de/id/eprint/27812

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