Increasing Foreign Aid for Inclusive Human Development in Africa

Asongu, Simplice; Nwachukwu, Jacinta C.

doi:10.2139/ssrn.2980877

Cited by 2 publications

(2 citation statements)

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“…However, to avoid proliferation or over-identification of instruments which causes biasedness of GMM estimator, over-fitting of endogenous variables, weakening of Sargan/Hansen test, the rule of thumb is that the number of instruments should not be higher than the number of periods in cross sections (Asongu and Nwachukwu, 2017). However, Roodman (2009) suggested that in order to avoid proliferation of instruments, the number of instruments should not exceed the number of groups (cross-section).…”

Section: Methodsmentioning

confidence: 99%

Effect of health outcome on economic growth in sub-Saharan Africa: a system generalized method of moment approach

Akinbode

Dipeolu

Bolarinwa

et al. 2021

JED

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PurposeSome progress have been made over time in improving health conditions in Sub-Saharan Africa (SSA). There are, however, contradicting reports on the relationship between health outcomes and economic growth in the region. The paper aimed at assessing the effect of health outcome on economic growth in SSA.Design/methodology/approachData for 41 countries from 2000 to 2018 were obtained from WDI and WGI and analyzed using system generalized method of moment (sGMM) which is appropriate for the present scenario. AR(1) and AR(2) tests were used to assess the validity of the model while Sargan and Hansen tests were adopted to examine the validity of the instrumental variables. The robustness of the estimation was confirmed using the pooled OLS and fixed effect regression.FindingsHealth outcome (proxied by life expectancy), lagged GDP per capita, capital formation, labor force (LF), health expenditure (HE), foreign direct investment (FDI) and trade openness (TOP) significantly affected economic growth emphasizing the importance of health in the process of economic growth in the region. AR(1) and AR(2) tests for serial correlation and Sargan/Hansen tests confirmed the validity of the estimated model and the instrumental variables respectively. Robustness of the GMM results was established from the pooled OLS and the fixed effect model results.Social implicationsImprovement in the national health system possibly through the widespread adoption of National Health Insurance, increase government spending on healthcare alongside increased beneficial trade and ease of doing business to facilitate investment were recommended to enhance.Originality/valueThe study used up-to-date data with appropriate methodology.

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Section: Methodsmentioning

confidence: 99%

Effect of health outcome on economic growth in sub-Saharan Africa: a system generalized method of moment approach

Akinbode

Dipeolu

Bolarinwa

et al. 2021

JED

View full text Add to dashboard Cite

show abstract

“…With this in mind, we focus on South Asian countries to examine the link between AID and health outcomes. 3 Our approach is similar to Bhaumik (2005), , Askarov and Doucouliagos (2015) and Asongu and Nwachukwu (2018) in focusing on the effectiveness of aid in countries that share similar geographical and economic characteristics. 4 The examination of the South Asian experience is motivated by two factors.…”

Section: Introductionmentioning

confidence: 99%

Does Health-related Aid Really Matter? Evidence from South Asia

Ahmed¹,

Chakrabarty

Sharma³

2023

The Indian Economic Journal

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Using data from South Asia for the period 1990–2017, this paper examines the effectiveness of the health sector aid on infant mortality, neonatal mortality, child mortality and a new composite index of child mortality. The investigation of South Asia is interesting not only because it accounts for roughly one quarter of the world population and has attracted significant aid over the years but also because of the significant variations in health outcomes between countries in the region. Applying the instrumental variables method to account for the endogeneity of aid, we find that health-focused aid assists in improving child health outcomes in South Asian countries. The effect operates mainly through female literacy and is robust to a variety of specifications. Our findings have significant policy implications for achieving the post-MDG target and point to the importance of the health sector aid to improve child health for countries swamped with poorer health status. JEL Codes: F35, I15, O53

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Increasing Foreign Aid for Inclusive Human Development in Africa

Cited by 2 publications

References 65 publications

Effect of health outcome on economic growth in sub-Saharan Africa: a system generalized method of moment approach

Effect of health outcome on economic growth in sub-Saharan Africa: a system generalized method of moment approach

Does Health-related Aid Really Matter? Evidence from South Asia

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