Responses to global challenges. Trends in aid-financed global public goods

Based on four decades (1973-2013) of DAC aid to developing countries, this paper aims at showing aid-financed global public goods trends, their changing composition and their main drivers. In particular, a constant increase in the share of aid-financed global public goods, together with a shift towards weighted-sum and weakest-link global goods are observed. Economic conditions, imitation effects, global engagement and domestic spending result as the main drivers of donors' demand of aid-financed global public goods. Besides, a certain complementarity in global goods provision plays a role, especially in European countries and Japan, partially easing the prognosis for the collective action problems related to global goods