Taking the health aid debate to the subnational level: the impact and allocation of foreign health aid in Malawi

Marty, Robert; Dolan, Carrie B.; Leu, Matthias; Runfola, Daniel Miller

doi:10.1136/bmjgh-2016-000129

Cited by 48 publications

(29 citation statements)

References 23 publications

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“…The result shows that there is more than proportionate increase in public investment in healthcare to the tune of 3.179 percent following 1 percent increase in ODA. This finding is line with the result of Lu, Cook & Desmond (2017) and Marty et al (2017) that foreign aid is effective in boosting public healthcare in the long run. On the contrary, broad-based grant impacted negatively on healthcare investment in the long run.…”

Section: Estimation Of the Ardl Modelssupporting

confidence: 89%

Exploring the Nexus Between Foreign Aid and Human Capital Development in Nigeria

2019

JESD

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This paper utilizes country-specific time series data over the period 1990-2017 and Autoregressive Distributive Lag (ARDL) model to estimate the relationship between and human capital development in Nigeria. The specific objectives focused on the impacts of official development assistance (ODA), broad-based grants and technical cooperation grants on public investments in education and healthcare. The Phillips-Perron unit root test results reveal that the variables are mixed integrated with evidence of levels and first difference stationarity. The mixed order of the integration in the series necessitated the application of ARDL bounds test for cointegration and the results indicate that the variables in each of the models have long run relationship. Findings from the estimated ARDL models reveal that lagged values ODA exert significant positive impact on public investment in education in the short run. Both the first and third lag of broad-based grant has significant negative relationship with public investment in education in the short run. The long run result revealed that ODA and technical cooperation grants have significant positive relationship with public investment in education. 1 percent increase in ODA and technical cooperation grants increases public investment in education by 4.289 percent and 0.829 percent respectively. It was further observed that the contemporaneous value of ODA has positive relationship with public healthcare investment in the short run. 1 percent increase in ODA inflow increases public healthcare investment by 1.099 percent. Additionally, there is more than proportionate increase in public investment in healthcare to the tune of 3.179 percent following 1 percent increase in ODA in the long run. Therefore, it is recommended among others that policy makers and donor countries/agencies should prioritize the education sector in the disbursement of foreign aid with a view to achieving the fourth Sustainable Development Goal (SDG) which is to ensure inclusive and quality education for all and promote lifelong learning.Following the underlying economic theory on aid-development relationship, the a priori expectations are of the form: 1  > 0, 2  > 0, 3  > 0, 4  > 0, θ1 > 0, θ2 > 0, θ3 > 0 and θ4 > 0. Results and Discussion 4.1 Unit Root Test ResultsThe empirical results of the unit root test conducted at 5 percent level of significance using Phillips and Perron (1988) method are showed in Table 1.

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Section: Estimation Of the Ardl Modelssupporting

confidence: 89%

Exploring the Nexus Between Foreign Aid and Human Capital Development in Nigeria

2019

JESD

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“…Different studies in African countries has been shown that health expenditure from external source was associated with reduced prevalence and severity of diarrhea [26]. It was reducing the prevalence of malaria as well as improved quality of self-reported health and it was also reduced the overall disease severity [27,28].…”

Section: Introductionmentioning

confidence: 99%

The effects of health expenditure on infant mortality in sub-Saharan Africa: evidence from panel data analysis

et al. 2020

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Introduction: Although health expenditure in sub-Saharan African countries is the lowest compared with other regions in the world, most African countries have improved their budget allocations to health care over the past 15 years. The majority of health care sources in sub-Saharan Africa are private and largely involve out-of-pocket expenditure, which may prevent healthcare access. Access to healthcare is a known predictor of infant mortality. Therefore the objective of this study is to determine the impact of health care expenditure on infant mortality in sub-Saharan Africa. Methods: The study used panel data from World Bank Development Indictors (WDI) from 2000 to 2015 covering 46 countries in sub-Saharan Africa. The random effects model was selected over the fixed effects model based on the Hausman test to assess the effect of health care expenditure on infant and neonatal mortality. Results: Both public and external health care spending showed a significant negative association with infant and neonatal mortality. However, private health expenditure was not significantly associated with either infant or neonatal mortality. In this study, private expenditure includes funds from households, corporations and non-profit organizations. Public expenditure include domestic revenue as internal transfers and grants, transfers, subsidies to voluntary health insurance beneficiaries, non-profit institutions serving households or enterprise financing schemes as well as compulsory prepayment and social health insurance contributions. External health expenditure is composed of direct foreign transfers and foreign transfers distributed by government encompassing all financial inflows into the national health system from outside the country. Conclusion: Health care expenditure remains a crucial component of reducing infant and neonatal mortality in sub-Saharan African countries. In the region, where health infrastructure is largely underdeveloped, increasing health expenditure will contribute to progress towards reducing infant and neonatal mortality during the Sustainable Development Goals (SDGs) era. Therefore, governments in the region need to increase amounts allocated to health care service delivery in order to reduce infant mortality.

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“…Moreover, by identifying areas that did and did not receive aid within countries, subnational data allow for quasi‐experimental techniques to gauge aid impacts. Using these data, scholars have found a positive association between aid and development (Dreher & Lohmann, ), including reductions in conflict (van Weezel, ); disease severity; diarrhea prevalence (De & Becker, ); malaria prevalence (Marty, Dolan, Leu, & Runfola, ); and neonatal, infant, and child mortality (Kotsadam et al, ).…”

Section: Introductionmentioning

confidence: 99%

The impact of aid on health outcomes in Uganda

Odokonyero

Marty²,

Muhumuza³

et al. 2017

Health Economics

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The health sector has attracted significant foreign aid; however, evidence on the effectiveness of this support is mixed. This paper combines household panel data with geographically referenced subnational foreign aid data to investigate the contribution of health aid to health outcomes in Uganda. Using a difference-in-differences approach, we find that aid had a strong effect on reducing the productivity burden of disease indicated by days of productivity lost due to illness but was less effective in reducing disease prevalence. Consequently, health aid appeared to primarily quicken recovery times rather than prevent disease. In addition, we find that health aid was most beneficial to individuals who lived closest to aid projects. Apart from the impact of aid, we find that aid tended to not be targeted to localities with the worse socioeconomic conditions. Overall, the results highlight the importance of allocating aid close to subnational areas with greater need to enhance aid effectiveness.

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Taking the health aid debate to the subnational level: the impact and allocation of foreign health aid in Malawi

Cited by 48 publications

References 23 publications

Exploring the Nexus Between Foreign Aid and Human Capital Development in Nigeria

Exploring the Nexus Between Foreign Aid and Human Capital Development in Nigeria

The effects of health expenditure on infant mortality in sub-Saharan Africa: evidence from panel data analysis

The impact of aid on health outcomes in Uganda

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