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Are Remittances More Effective Than Aid To Improve Child Health? An Empirical Assessment using Inter and Intra-Country Data

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  • Chauvet, Lisa
  • Gubert, Flore
  • Mesplé-Somps, Sandrine

Abstract

The objective of the paper is to analyze the respective impact of aid and remittances on human development as measured by infant and child mortality rates and stunting incidence. Panel data on a sample of 98 developing countries, and cross-country quintile-level data on a sample of 47 developing countries are alternatively used. In addition to assessing the extent to which health aid and remittances contribute to reduce child health disparities between countries, the paper addresses two other questions. What is the net effect of migration when the brain drain of health workers is accounted for? What is the effective impact of aid and remittances on intra-country child health disparities? Our results suggest that both remittances and health aid significantly improve child health outcomes. The impact of health aid is non-linear, though, suggesting that aid to the health sector is more effective in the poorest countries. By contrast, medical brain drain, as measured by the expatriation rate of physicians, is found to have a harmful impact on health outcomes. The net impact of migration on human development is therefore mitigated. Medical brain drain is also found to reduce the effectiveness of health aid. Last, remittances seem to be much more effective in improving health outcomes for children belonging to the richest households, whereas neither pro-poor nor anti-poor effect is found for health aid.

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Bibliographic Info

Paper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/10707.

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Date of creation: Jun 2008
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Handle: RePEc:dau:papers:123456789/10707

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Related research

Keywords: Child Health; Remittances; International Migration; Foreign Aid;

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References

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  1. Shawn Kanaiaupuni & Katharine Donato, 1999. "Migradollars and mortality: The effects of migration on infant survival in Mexico," Demography, Springer, vol. 36(3), pages 339-353, August.
  2. Jean-Pierre Lachaud, 1999. "Envoi de fonds, inégalité et pauvreté au Burkina Faso," Documents de travail 40, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
  3. Pritchett, Lant & Summers, Lawrence H., 1993. "Wealthier is healthier," Policy Research Working Paper Series 1150, The World Bank.
  4. Ravallion, Martin, 2007. ""Achieving Child-Health-Related Millennium Development Goals: The Role of Infrastructure"--A Comment," World Development, Elsevier, vol. 35(5), pages 920-928, May.
  5. Alejandra Cox Edwards & Manuelita Ureta, 2003. "International Migration, Remittances, and Schooling: Evidence from El Salvador," NBER Working Papers 9766, National Bureau of Economic Research, Inc.
  6. Mesplé-Somps, Sandrine & Chauvet, Lisa, 2007. "Impact des financements internationaux sur les inégalités des pays en développement," Economics Papers from University Paris Dauphine 123456789/4350, Paris Dauphine University.
  7. Filmer, Deon & Pritchett, Lant, 1999. "The impact of public spending on health: does money matter?," Social Science & Medicine, Elsevier, vol. 49(10), pages 1309-1323, November.
  8. Hansen, Henrik & Tarp, Finn, 2001. "Aid and growth regressions," Journal of Development Economics, Elsevier, vol. 64(2), pages 547-570, April.
  9. Raghuram G. Rajan & Arvind Subramanian, 2008. "Aid and Growth: What Does the Cross-Country Evidence Really Show?," The Review of Economics and Statistics, MIT Press, vol. 90(4), pages 643-665, November.
  10. Fay, Marianne & Leipziger, Daniel & Wodon, Quentin & Yepes, Tito, 2007. ""Achieving Child-Health-Related Millennium Development Goals: The Role of Infrastructure"--A Reply," World Development, Elsevier, vol. 35(5), pages 929-930, May.
  11. R. Lensink & H. White, 2001. "Are There Negative Returns to Aid?," Journal of Development Studies, Taylor & Francis Journals, vol. 37(6), pages 42-65.
  12. Fay, Marianne & Leipziger, Danny & Wodon, Quentin & Yepes, Tito, 2005. "Achieving child-health-related Millennium Development Goals: The role of infrastructure," World Development, Elsevier, vol. 33(8), pages 1267-1284, August.
  13. Sudhir Anand & Martin Ravallion, 1993. "Human Development in Poor Countries: On the Role of Private Incomes and Public Services," Journal of Economic Perspectives, American Economic Association, vol. 7(1), pages 133-150, Winter.
  14. McGuire, James W., 2006. "Basic health care provision and under-5 mortality: A Cross-National study of developing Countries," World Development, Elsevier, vol. 34(3), pages 405-425, March.
  15. Boone, Peter, 1996. "Politics and the effectiveness of foreign aid," European Economic Review, Elsevier, vol. 40(2), pages 289-329, February.
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Citations

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Cited by:
  1. Patrick GUILLAUMONT, 2009. "Aid effectiveness for poverty reduction: macroeconomic overview and emerging issues," Working Papers P05, FERDI.
  2. Antwi, James & Phillips, David C., 2013. "Wages and health worker retention: Evidence from public sector wage reforms in Ghana," Journal of Development Economics, Elsevier, vol. 102(C), pages 101-115.
  3. Acevedo-Garcia, Dolores & Sanchez-Vaznaugh, Emma V. & Viruell-Fuentes, Edna A. & Almeida, Joanna, 2012. "Integrating social epidemiology into immigrant health research: A cross-national framework," Social Science & Medicine, Elsevier, vol. 75(12), pages 2060-2068.
  4. Patrick Guillaumont, 2011. "Aid effectiveness for poverty reduction:macroeconomic overview and emerging issues," Working Papers halshs-00554285, HAL.
  5. Roberto Burguet & Marcelo Soto, 2011. "Seeds of hope: Assessing the effect of development aid on the reduction of child mortality," UFAE and IAE Working Papers 890.11, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).

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