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Throwing Foreign Aid at HIV/AIDS in Developing Countries: Missing the Target?

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Author Info

  • Peter Nunnenkamp

    (Kiel Institute for the World Economy)

  • Hannes Öhler

    (Georg-August-University Göttingen)

Abstract

We assess empirically whether foreign official development assistance (ODA) has been effective in alleviating HIV/AIDS epidemics, which figures prominently among the Millennium Development Goals. We employ a difference-in-difference-in-differences approach to identify the treatment effect of ODA specifically meant to fight sexually transmitted diseases on HIV/AIDS-related outcome variables. We do not find that ODA has prevented new infections to an extent that would have reduced the number of people living with HIV. By contrast, ODA has contributed effectively to the medical care of infected people. However, conclusive evidence on significant treatment effects on AIDS-related deaths only exists for the major bilateral source of ODA, the United States. In particular, targeted US assistance programs appear to be more effective than the activities of multilateral organizations.

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Bibliographic Info

Paper provided by Courant Research Centre PEG in its series Courant Research Centre: Poverty, Equity and Growth - Discussion Papers with number 42.

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Date of creation: 31 Aug 2010
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Handle: RePEc:got:gotcrc:042

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Related research

Keywords: HIV prevalence; AIDS-related deaths; official development assistance; aid effectiveness; major donors; difference-in-difference-in-differences;

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References

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  1. Tim Allen, 2004. "Introduction: why don't HIV|AIDS policies work?," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(8), pages 1123-1127.
  2. Sarantis Kalyvitis & Irene Vlachaki, 2010. "Democratic Aid And The Democratization Of Recipients," Contemporary Economic Policy, Western Economic Association International, vol. 28(2), pages 188-218, 04.
  3. Busse, Matthias & Groening, Steffen, 2010. "Does Foreign Aid Improve Governance?," Proceedings of the German Development Economics Conference, Hannover 2010 6, Verein für Socialpolitik, Research Committee Development Economics.
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  5. Alesina, Alberto & Devleeschauwer, Arnaud & Wacziarg, Romain & Kurlat, Sergio & Easterly, William, 2003. "Fractionalization," Scholarly Articles 4553003, Harvard University Department of Economics.
  6. Hristos Doucouliagos & Martin Paldam, 2009. "The Aid Effectiveness Literature: The Sad Results Of 40 Years Of Research," Journal of Economic Surveys, Wiley Blackwell, vol. 23(3), pages 433-461, 07.
  7. Alberto Alesina & David Dollar, 1998. "Who Gives Foreign Aid to Whom and Why?," NBER Working Papers 6612, National Bureau of Economic Research, Inc.
  8. 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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  10. Caryn Anne Peiffer & Constantine Boussalis, 2010. "Foreign Assistance and the Struggle Against HIV/AIDS in the Developing World," Journal of Development Studies, Taylor & Francis Journals, vol. 46(3), pages 556-573.
  11. Claudia R. Williamson, 2008. "Foreign Aid and Human Development: The Impact of Foreign Aid to the Health Sector," Southern Economic Journal, Southern Economic Association, vol. 75(1), pages 188-207, July.
  12. Rati Ram, 2003. "Roles of Bilateral and Multilateral Aid in Economic Growth of Developing Countries," Kyklos, Wiley Blackwell, vol. 56(1), pages 95-110, February.
  13. Dreher, Axel & Nunnenkamp, Peter & Thiele, Rainer, 2008. "Does Aid for Education Educate Children? Evidence from Panel Data," Open Access Publications from Kiel Institute for the World Economy 28827, Kiel Institute for the World Economy (IfW).
  14. Edoardo Gaffeo, 2003. "The Economics of HIV/AIDS: A Survey," Development Policy Review, Overseas Development Institute, vol. 21(1), pages 27-49, 01.
  15. Nicoli Nattrass, 2006. "What Determines Cross-Country Access to Antiretroviral Treatment?," Development Policy Review, Overseas Development Institute, vol. 24(3), pages 321-337, 05.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Does Foreign Aid Reduce HIV/AIDS Infection Rates?
    by Ariel Goldring in Free Market Mojo on 2010-08-31 10:45:05

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