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Aid for AIDS in Africa

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  • Khusrav Gaibulloev
  • Todd Sandler

    ()

Abstract

This article applies a two-tiered contribution model to ascertain the determinants of donors’ participation and contribution levels to giving aid for controlling HIV/AIDS in Africa. Bayesian spatial estimates for the two-tiered model are presented for 22 donor countries that gave aid to 48 recipient countries during 2000–2007. We account for the public nature of HIV/AIDS contributions by including the contributions of other donors as a determinant at both participation and expenditure stages, along with standard determinants of general assistance. Independent variables account for altruistic, political, economic, location, institutional, and environmental factors. Donor’s reaction to spillovers differs in the two stages, thereby supporting the two-tiered estimates over the single-stage Tobit estimates. Aid for AIDS in Africa is motivated by a complex mix of strategic (publicness), altruistic, and donor self-interests. Key factors at both stages include donors’ spillovers, rule of law, past colonial ties, sharing a common language, trade, and people living with HIV. A host of robustness tests are presented. Copyright Springer-Verlag 2012

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Bibliographic Info

Article provided by Springer in its journal Empirical Economics.

Volume (Year): 43 (2012)
Issue (Month): 3 (December)
Pages: 1171-1197

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Handle: RePEc:spr:empeco:v:43:y:2012:i:3:p:1171-1197

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Related research

Keywords: HIV/AIDS; Foreign aid; Bayesian spatial estimates; Public good spillovers; Two-tiered contributions; Donor country; H42; O19; C11;

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References

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  1. Cornes, Richard & Sandler, Todd, 1984. "Easy Riders, Joint Production, and Public Goods," Economic Journal, Royal Economic Society, vol. 94(375), pages 580-98, September.
  2. Mishra, Prachi & Newhouse, David, 2009. "Does health aid matter?," Journal of Health Economics, Elsevier, vol. 28(4), pages 855-872, July.
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  9. Dollar, David & Levin, Victoria, 2006. "The Increasing Selectivity of Foreign Aid, 1984-2003," World Development, Elsevier, vol. 34(12), pages 2034-2046, December.
  10. Eric Neumayer, 2003. "Do Human Rights Matter in Bilateral Aid Allocation? A Quantitative Analysis of 21 Donor Countries," Social Science Quarterly, Southwestern Social Science Association, vol. 84(3), pages 650-666.
  11. William Greene, 2004. "The behaviour of the maximum likelihood estimator of limited dependent variable models in the presence of fixed effects," Econometrics Journal, Royal Economic Society, vol. 7(1), pages 98-119, 06.
  12. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-44, September.
  13. Dollar, David & Levin, Victoria, 2005. "Sowing and reaping: institutional quality and project outcomes in developing countries," Policy Research Working Paper Series 3524, The World Bank.
  14. Chai, Sun-Ki, 1998. "Endogenous Ideology Formation and Economic Policy in Former Colonies," Economic Development and Cultural Change, University of Chicago Press, vol. 46(2), pages 263-90, January.
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