This paper analyse the impact of health foreign assistance on physicians' brain drain. We use the database from Bhargava and Docquier (2008) to explain physicians' brain drain and health foreign assistance from 1995 to 2003 using a bilateral gravity equation model. In the first time, we propose to investigate the direct and reverse impact of health assistance through simultaneous equation model with Three-Stage Least Squares (3SLS) methodology and highlight a significant negative effect of health foreign assistance on the medical brain whereas emigration rate of doctor increases the amount of health aid received by recipient countries. In a second time, we analyzed the indirect effect of health aid via epidemics prevalence through the death rate per 1000 people. We find that health aid plays a key role in the improvement of vaccination, treatment and prevention which may reduce death rate and, finally, decreases the physicians emigration rates. These findings confirm the efficiency of health foreign aid to weaken the vicious circle of physicians drain.
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Find related papers by JEL classification: F22 - International Economics - - International Factor Movements and International Business - - - International Migration F35 - International Economics - - International Finance - - - Foreign Aid O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data I1 - Health, Education, and Welfare - - Health O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
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