The Impact of Official Development Assistance and Health Aid on Health in Developing Countries
Subject Areas : medical documents
1 - Associate Professor, Department of Economics, Payam-e-Noor University, Tehran, Iran
Keywords: Health, Developing Countries, Dynamic Ordinary Least Square, Official Development Assistance,
Abstract :
Introduction: Foreign aid is one of the ways to increase health spending in developing and low-income countries to achieve the goals of global health care coverage. Accordingly, the main purpose of this study is to investigate the impact of official development assistance and health aids in developing countries. Methods: This study is paid to study long-term relationship between health indicator, the share of official development assistance and health aids in GDP, per capita physician, income, education and urbanization, by using the statistical data of 25 developing countries (including Iran) during the period 1995-2017. For this purpose, the Dynamic Ordinary Least Square (DOLS) estimator is used. Also, the statistical analyzes were performed using the Eviews soft wares. Results: Based on the results of the model estimation, the share of health aids in GDP, per capita physician, income per capita, enrollment rates in secondary courses (education index) and urbanization rate; improve the health indicator in the long-term. One percent increase in the share of health aids in GDP, reduce the infant mortality rate (IMR) in developing countries by about 0.18 percent, in the long run. But share of official development aids to GDP has not a significant effect on the health index. Conclusion: Proper use and management the health aid in developing countries can help improve health in these countries.
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7- https://www.oecd.org/dac/stats/health-related-aid-data.htm
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10- Boone P. Politics and the Effectiveness of Foreign Aid. European Economic Review 1996; 40(2): 289-329.
11- Easterly W. Can Foreign Aid buy Growth? Journal of Economic Perspectives 2003; 17(3): 23-48.
12- Van de Sijpe N. The Fungibility of Health Aid Reconsidered. Journal of Development Studies 2013; 49: 1746-1754.
13- Lu C, Schneider MT, Gubbins P, Leach-Kemon K, Jamison D, Murray C. Public Financing of Health in Developing Countries: A Cross-national Systematic Analysis. The Lancet 2010; 375(9723): 1375-1387.
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18- Kizhakethalackal ET, Mukherjee D, Alvi E. Quintile Regression Analysis of Health-Aid and Infant Mortality: A Note. Applied Economics Letters 2013; 20(13): 1197-1201.
19- Mukherjee D, & Kizhakkethalackal E.T. Empirics of Health Aid, Education and Infant Mortality: A Semi Parametric Study. Applied Economics 2013; 45(22): 3137-3150.
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28- Brempong K, Asiedu E. Aid and Human Capital Formation: Some Evidence. Institutions and Economic Development in Africa 2008.
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30- Nagel K, Herzer D, Nunnenkamp P. How Does FDI Affect Health? Int Econom J. 2015; 29(4): 655-79.
31- Ashrafzadeh HR, Mehregan N. Panel Data Econometrics. Tehran University. Institute of Tawon Research. [In Persian]
32- Stock JH, Watson M.W. A Simple Estimator of Co-integrating Vectors in Higher Order Integrated Systems. Econometrica 1993; 61: 783 -820.
33- Bengake C, Eggoh JC. Pooled Mean Group Estimation on International Capital Mobility in African Countries. Research in Economics 2012; 66: 7-17.
34- Baltagi B. Econometric analysis of panel data: John Wiley & Sons Ltd 2005.
35- Pesaran MH. A Simple Panel Unit Root Test in the Presence of Cross-Section Dependence. J Appl Econometr. 2007; 22(2): 265-312. DOI: 10.1002/jae.951
36- Pedroni P. Panel Co-integration, Asymptotic and Finite Sample Properties of Pooled Time Series Tests with an Application to the PPP Hypothesis. Econometric Theory 2004; 3: 597-625.
37- Kao C. Spurious Regression and Residual-Based Tests for Co-integration in Panel Data. Journal of Econometrics 1999; 90: 1-44.
38- Nagel K, Herzer D, Nunnenkamp P. How Does FDI Affect Health? Int Econom J. 2015; 29(4): 655-79.
39- Golkhandan A. The Impact of Foreign Direct Investment on Health in Developing Countries. hrjbaq 2017; 2 (4): 235-243. [In Persian]
_||_1- Rezaei H, Alizadeh M, Nademi Y. Effective Factors on Per Capita Healthcare Expenditure: A Comparison of Spatial Models in Selected Developing Countries. Quarterly Journal of Applied Theories of Economics 2017; 4(2): 1-26. [In Persian]
2- Chenery H, Strout, M. Foreign Assistance and Economic Development. The American Economic Review 1996; 56: 679-733.
3- Bacha EL. A Three-Gap Model of Foreign Transfer and the GDP Growth in Developing Countries. Journal of Development Economics 1990; 32: 279-96.
4- Taylor L. Gap models, Journal of Development Economics 1993; 45: 17-34.
5- Emami K, Azadvar N. Investigating the Effect of Foreign Aid on Per Capita Income Growth in Selected Developing Countries in Asia and Africa, Financial Economics 2015; 9(30): 99-120. [In Persian]
6- Kotsadam A, Ostby G, Rustad SA, Tollefsen AF, Urdal H. Development Aid and Infant Mortality: Micro Level Evidence from Nigeria. World Development 2018; 105: 59-69.
7- https://www.oecd.org/dac/stats/health-related-aid-data.htm
8- Gormanee K, Girma, S, & Morrissey O. Aid, Public Spending and Human Welfare: Evidence from Quintile Regressions. Journal of International Development 2005; 17(3): 299-309.
9- Arndt C. Jones S, Tarp F. What is the Aggregate Economic Return to Foreign Aid? The World Bank Economic Review 2016; 30(3): 446–474.
10- Boone P. Politics and the Effectiveness of Foreign Aid. European Economic Review 1996; 40(2): 289-329.
11- Easterly W. Can Foreign Aid buy Growth? Journal of Economic Perspectives 2003; 17(3): 23-48.
12- Van de Sijpe N. The Fungibility of Health Aid Reconsidered. Journal of Development Studies 2013; 49: 1746-1754.
13- Lu C, Schneider MT, Gubbins P, Leach-Kemon K, Jamison D, Murray C. Public Financing of Health in Developing Countries: A Cross-national Systematic Analysis. The Lancet 2010; 375(9723): 1375-1387.
14- Mishra P, Newhouse D. Does Health Aid Matter? Journal of Health Economics 2009; 28(4): 855-872.
15- Afridi MA, Ventelou, B. Importance of Health aid in Developing Countries: The Public vs. The Private channel. Economic Modelling 2013; 31: 759-765.
16- Feeney S, Ouattara B. The Effects of Health Aid on Child Health Promotion in Developing Countries: Cross Country Evidence. Applied Economics 2013; 45(7): 911-919.
17- Taylor EM, Hayman R, Crawford F, Jeffery P, Smith J. The Impact of Official Development Aid on Maternal and Reproductive Health Outcomes: A Systematic Review. PLoS ONE 2013; 8(2): e5627.
18- Kizhakethalackal ET, Mukherjee D, Alvi E. Quintile Regression Analysis of Health-Aid and Infant Mortality: A Note. Applied Economics Letters 2013; 20(13): 1197-1201.
19- Mukherjee D, & Kizhakkethalackal E.T. Empirics of Health Aid, Education and Infant Mortality: A Semi Parametric Study. Applied Economics 2013; 45(22): 3137-3150.
20- Wilson S. Chasing Success: Health Sector Aid and Mortality. World Development 2011; 39(11): 2032-2043.
21- Fielding D. Health Aid and Governance in Developing Countries. Health Economics 2011; 20(7): 757-769.
22- Farag M, Nandakumar A, Wallack S, Hodgkin D, Gaumer G, Erbil, C. Health Expenditures, Health Outcomes and the Role of Good Governance. International Journal of Health Care Finance and Economics 2013; 13(1): 33-52.
23- Youde J. Bio Political Surveillance and Public Health in International Politics. New York, NY: Palgrave Macmillan 2009. doi:10.1057/9780230104785
24- Shiffman J. A Social Explanation for the Rise and fall of Global Health Issues. Bulletin of the World Health Organization 2011, 87(8); 608-613.
25- Yogo UT, Mallaye D. Health Aid and Health Improvement in Sub-Saharan Africa: Accounting for the Heterogeneity between Stable States and Post-Conflict States. Journal of International Development 2015; 27(7): 1178-1196.
26- Sadek Yousuf A. Impact of Health Aid on Infant Mortality Rate. Munich personal Repec Archive 2012.
27- Muhammad K, Mumtaz A. Effectiveness of Foreign Aid in the Light of Millennium Development Goat on the Health Sector: A Case Study of Pakistan. Munich personal REPEC Archive 2012.
28- Brempong K, Asiedu E. Aid and Human Capital Formation: Some Evidence. Institutions and Economic Development in Africa 2008.
29- Pickbourn L, Ndikumana L. Does Health Aid Reduce Infant and Child Mortality from Diarrhoea in Sub-Saharan Africa? The Journal of Development Studies 2018, https://doi.org/10.1080/00220388.2018.1536264.
30- Nagel K, Herzer D, Nunnenkamp P. How Does FDI Affect Health? Int Econom J. 2015; 29(4): 655-79.
31- Ashrafzadeh HR, Mehregan N. Panel Data Econometrics. Tehran University. Institute of Tawon Research. [In Persian]
32- Stock JH, Watson M.W. A Simple Estimator of Co-integrating Vectors in Higher Order Integrated Systems. Econometrica 1993; 61: 783 -820.
33- Bengake C, Eggoh JC. Pooled Mean Group Estimation on International Capital Mobility in African Countries. Research in Economics 2012; 66: 7-17.
34- Baltagi B. Econometric analysis of panel data: John Wiley & Sons Ltd 2005.
35- Pesaran MH. A Simple Panel Unit Root Test in the Presence of Cross-Section Dependence. J Appl Econometr. 2007; 22(2): 265-312. DOI: 10.1002/jae.951
36- Pedroni P. Panel Co-integration, Asymptotic and Finite Sample Properties of Pooled Time Series Tests with an Application to the PPP Hypothesis. Econometric Theory 2004; 3: 597-625.
37- Kao C. Spurious Regression and Residual-Based Tests for Co-integration in Panel Data. Journal of Econometrics 1999; 90: 1-44.
38- Nagel K, Herzer D, Nunnenkamp P. How Does FDI Affect Health? Int Econom J. 2015; 29(4): 655-79.
39- Golkhandan A. The Impact of Foreign Direct Investment on Health in Developing Countries. hrjbaq 2017; 2 (4): 235-243. [In Persian]
