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Do Health Conditions Determine the Flow of External Health Resources? Evidence from Panel Data

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  • Katharina M K Stepping

    (Department of Economics, Philipps-University Marburg, Marburg, Germany
    Collegio Carlo Alberto, University of Torino, Moncalieri, Italy)

Abstract

This article examines the determinants underlying the decision to select a recipient country and the decision about how much health aid to transfer, using data from 22 bilateral donors and 160 recipient countries between 1990 and 2007. Many different factors influence the decisions at each of the two decision stages. Whereas a suite of health indicators – maternal and child health as well as HIV/AIDS – influence the selection decision, only HIV/AIDS matters for the actual funding decision. Poor countries have greater selection chances and attract greater aid shares. The corruption level does not play a significant role in the decision-making process. Domestic health expenditures are associated with a greater chance of being selected as a recipient. Decisions taken by bilateral donors are not affected by multilateral donors. Not only is the donor–recipient relationship a significant explanatory factor, but so are a donor’s characteristics.

Suggested Citation

  • Katharina M K Stepping, 2016. "Do Health Conditions Determine the Flow of External Health Resources? Evidence from Panel Data," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 28(2), pages 270-293, April.
    • Handle: RePEc:pal:eurjdr:v:28:y:2016:i:2:p:270-293
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    Cited by:

    1. Suzuki, Mao, 2020. "Profits before patients? Analyzing donors’ economic motives for foreign aid in the health sector," World Development, Elsevier, vol. 132(C).
    2. Abrams M E Tagem, 2017. "Analysing the determinants of health aid allocation in sub-Saharan Africa," Discussion Papers 2017-09, University of Nottingham, CREDIT.
    3. Kobayashi, Yoshiharu & Heinrich, Tobias & Bryant, Kristin A., 2021. "Public support for development aid during the COVID-19 pandemic," World Development, Elsevier, vol. 138(C).

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