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The (mis) allocation of public spending in a low income country: Evidence from disaster risk reduction spending in Bangladesh

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dc.contributor.author Karim, Azreen
dc.contributor.author Noy, Ilan
dc.date.accessioned 2015-03-09T22:42:20Z
dc.date.accessioned 2022-07-07T02:23:28Z
dc.date.available 2015-03-09T22:42:20Z
dc.date.available 2022-07-07T02:23:28Z
dc.date.copyright 2015
dc.date.issued 2015
dc.identifier.uri https://ir.wgtn.ac.nz/handle/123456789/19263
dc.description.abstract Rational allocation of limited public resources is critical to achieve the stated aims of government programmes. Here, we focus on the regional allocation of public spending for disaster risk reduction in Bangladesh as a case study to identify the rationale that guides public funding allocations. It is well understood that any government’s public spending decision-making is also affected by considerations other than need, and our objective in this paper is to identify all of the directly observable determinants’ of publicly allocated and realized spending at the local government (sub-district) level. We employ the Heckman two-stage selection model with detailed public finance and other data from 483 sub-districts (upazilas) across the country. While some of our results conform with our priors, our estimations surprisingly find that government does not respond to the sub-district’s risk exposure as a factor affecting the DRR financing mechanism. This variable is consistently counter-intuitively negative and statistically significant. The DRR regional allocations do not seem to be determined by risk and exposure, only weakly by vulnerability, nor even by more transparent political economy motivations. This is surprising, as the Bangladesh DRR program is considered a poster-child of DRR investments. en_NZ
dc.format pdf en_NZ
dc.language.iso en_NZ
dc.publisher Te Herenga Waka—Victoria University of Wellington en_NZ
dc.relation.ispartofseries SEF Working paper ; 05/2015 en_NZ
dc.subject Public spending en_NZ
dc.subject Natural disasters, en_NZ
dc.subject Sub-district en_NZ
dc.subject Heckman selection en_NZ
dc.title The (mis) allocation of public spending in a low income country: Evidence from disaster risk reduction spending in Bangladesh en_NZ
dc.type Text en_NZ
vuwschema.contributor.unit School of Economics and Finance en_NZ
vuwschema.subject.anzsrcfor 140299 Applied Economics not elsewhere classified en_NZ
vuwschema.type.vuw Working or Occasional Paper en_NZ
vuwschema.subject.anzsrcforV2 380199 Applied economics not elsewhere classified en_NZ
dc.rights.rightsholder www.victoria.ac.nz/sef/research/sef.workingpapers en_NZ

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