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Can Health Foreign Assistance Break the Medical Brain Drain?

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  • Moullan, Yasser

Abstract

This paper analyses 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 drain 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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Bibliographic Info

Paper provided by Verein für Socialpolitik, Research Committee Development Economics in its series Proceedings of the German Development Economics Conference, Frankfurt a.M. 2009 with number 22.

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Date of creation: 2009
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Handle: RePEc:zbw:gdec09:22

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Keywords: International Migration; Physicians Emigration Rates; Foreign Aid; Health foreign assistance; Simultaneous Equation Model; Three Stage Least Squares; Gravity Equation model;

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  1. Kugler, Maurice & Rapoport, Hillel, 2007. "International labor and capital flows: Complements or substitutes?," Economics Letters, Elsevier, vol. 94(2), pages 155-162, February.
  2. Tavares, Jose, 2003. "Does foreign aid corrupt?," Economics Letters, Elsevier, vol. 79(1), pages 99-106, April.
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  5. Michel Beine & Frédéric Docquier & Hillel Rapoport, 2001. "Brain drain and economic growth: theory and evidence," ULB Institutional Repository 2013/10449, ULB -- Universite Libre de Bruxelles.
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  9. Sajal Lahiri & Pascalis Raimondos-Møller, 1999. "Lobbying by Ethnic Groups and Aid Allocation," EPRU Working Paper Series 99-05, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics, revised Oct 2003.
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  13. Mountford, Andrew, 1997. "Can a brain drain be good for growth in the source economy?," Journal of Development Economics, Elsevier, vol. 53(2), pages 287-303, August.
  14. Mansuri, Ghazala, 2006. "Migration, school attainment, and child labor : evidence from rural Pakistan," Policy Research Working Paper Series 3945, The World Bank.
  15. Richard B. Freeman & Remco Oostendorp, 2000. "Wages Around the World: Pay Across Occupations and Countries," NBER Working Papers 8058, National Bureau of Economic Research, Inc.
  16. Alok Bhargava & Frédéric Docquier, 2008. "HIV Pandemic, Medical Brain Drain, and Economic Development in Sub-Saharan Africa," World Bank Economic Review, World Bank Group, vol. 22(2), pages 345-366, May.
  17. Astor, Avraham & Akhtar, Tasleem & Matallana, María Alexandra & Muthuswamy, Vasantha & Olowu, Folarin A. & Tallo, Veronica & Lie, Reidar K., 2005. "Physician migration: Views from professionals in Colombia, Nigeria, India, Pakistan and the Philippines," Social Science & Medicine, Elsevier, vol. 61(12), pages 2492-2500, December.
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Cited by:
  1. Frédéric Docquier & Hillel Rapoport, 2009. "Documenting the Brain Drain of "La Crème de la Crème"," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 229(6), pages 679-705, December.

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