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Does Aid Improve Public Service Delivery?

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  • Wolf, Susanna
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    Abstract

    The expected increase in aid to Africa will put a big challenge for public service delivery. Using a simultaneous equation model, this paper provides an analysis of the effects of the volume and volatility of aid on education, health, water and sanitation outcomes, taking also into account the institutions related to public service delivery, including freedom of press, corruption and decentralization. Overall, the share of official development assistance (ODA) that is provided for education and health seems to have a positive impact on the outcomes in these sectors, whereas total aid seems to be negatively associated. Aid volatility is associated with better outcomes in sanitation, water and infant mortality, contrary to expectations.

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    File URL: http://www.wider.unu.edu/stc/repec/pdfs/rp2007/rp2007-71.pdf
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    Bibliographic Info

    Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper RP2007/71.

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    Length: 24 pages
    Date of creation: 2007
    Date of revision:
    Handle: RePEc:unu:wpaper:rp2007-71

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    Related research

    Keywords: public expenditure; aid; education; health; water; sanitation; Africa;

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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. Rohen D'Aiglepierre & Laurent Wagner, 2011. "Aid and Universal Primary Education," Working Papers halshs-00552241, HAL.
    3. Bain, Robert & Luyendijk, Rolf & Bartram, Jamie, 2013. "Universal access to drinking water: the role of aid," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    4. Jennis J. BISER & Jeffrey A. EDWARDS, 2012. "Civil Liberties and Access to Water: Analysis of 193 Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 12(1).
    5. Axel Dreher & Peter Nunnenkamp & Rainer Thiele, 2008. "Does Aid for Education Educate Children? Evidence from Panel Data," World Bank Economic Review, World Bank Group, vol. 22(2), pages 291-314, April.
    6. Nicolas Van de Sijpe, 2013. "Is Foreign Aid Fungible? Evidence from the Education and Health Sectors," World Bank Economic Review, World Bank Group, vol. 27(2), pages 320-356.
    7. Patrick GUILLAUMONT, 2009. "Aid effectiveness for poverty reduction: macroeconomic overview and emerging issues," Working Papers P05, FERDI.
    8. Maiga, Eugenie W.H., 2014. "Does foreign aid in education foster gender equality in developing countries?," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    9. Fenta Mandefro & Mina Noor & Nora Stel, 2012. "Service Delivery and State Legitimacy: Multi-Stakeholder Processes in Water and Sanitation in Ethiopia As defined by the," Working Papers 2012/44, Maastricht School of Management.
    10. Fenta Mandefro & Mina Noor & Nora Stel, 2011. "Service Delivery and State Legitimacy: Multi-Stakeholder Processes in Water and Sanitation in Ethiopia," Working Papers 2011/37, Maastricht School of Management.
    11. Patrick Guillaumont, 2011. "Aid effectiveness for poverty reduction:macroeconomic overview and emerging issues," Working Papers halshs-00554285, HAL.
    12. Birchler, Kassandra & Michaelowa, Katharina, 2013. "Making aid work for education in developing countries: An analysis of aid effectiveness for primary education coverage and quality," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    13. Anwar, Mumtaz & Rashid, Muhammad Khalid, 2011. "Effectiveness of foreign aid in the light of millennium development goal on the health sector: a case study of Pakistan," MPRA Paper 37142, University Library of Munich, Germany.
    14. Ziesemer, Thomas, 2012. "The impact of development aid on education and health: Survey and new evidence from dynamic models," MERIT Working Papers 057, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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