IDEAS home Printed from https://ideas.repec.org/a/eee/jeborg/v211y2023icp549-566.html
   My bibliography  Save this article

The epidemic effect: Epidemics, institutions and human capital development

Author

Listed:
  • Archibong, Belinda
  • Annan, Francis
  • Ekhator-Mobayode, Uche

Abstract

Epidemics can negatively affect economic development unless they are mitigated by global governance institutions. We examine the effects of sudden exposure to epidemics on human capital outcomes using evidence from the African meningitis belt. Meningitis shocks reduce child health outcomes, particularly when the World Health Organization (WHO) does not declare an epidemic year. These effects are reversed when the WHO declares an epidemic year. Children born in meningitis shock areas in a year when an epidemic is declared are 10 percentage points (pp) less stunted and 8.2 pp less underweight than their peers born in non-epidemic years. We find evidence for the crowd-out of routine vaccination during epidemic years. We analyze data from World Bank projects and find evidence that an influx of health aid in response to WHO declarations may partly explain these reversals.

Suggested Citation

  • Archibong, Belinda & Annan, Francis & Ekhator-Mobayode, Uche, 2023. "The epidemic effect: Epidemics, institutions and human capital development," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 549-566.
    • Handle: RePEc:eee:jeborg:v:211:y:2023:i:c:p:549-566
    DOI: 10.1016/j.jebo.2023.05.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167268123001579
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jebo.2023.05.012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jane G Fortson, 2011. "Mortality Risk and Human Capital Investment: The Impact of HIV/AIDS in Sub-Saharan Africa," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 1-15, February.
    2. Jérôme Adda, 2016. "Economic Activity and the Spread of Viral Diseases: Evidence from High Frequency Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(2), pages 891-941.
    3. Darin Christensen & Oeindrila Dube & Johannes Haushofer & Bilal Siddiqi & Maarten Voors, 2021. "Building Resilient Health Systems: Experimental Evidence from Sierra Leone and The 2014 Ebola Outbreak," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(2), pages 1145-1198.
    4. Alesina, Alberto & Dollar, David, 2000. "Who Gives Foreign Aid to Whom and Why?," Journal of Economic Growth, Springer, vol. 5(1), pages 33-63, March.
    5. Alberto Abadie & Susan Athey & Guido W Imbens & Jeffrey M Wooldridge, 2023. "When Should You Adjust Standard Errors for Clustering?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 138(1), pages 1-35.
    6. Stelios Michalopoulos & Elias Papaioannou, 2013. "Pre‐Colonial Ethnic Institutions and Contemporary African Development," Econometrica, Econometric Society, vol. 81(1), pages 113-152, January.
    7. David Dollar & Craig Burnside, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 847-868, September.
    8. McDonald, Scott & Roberts, Jennifer, 2006. "AIDS and economic growth: A human capital approach," Journal of Development Economics, Elsevier, vol. 80(1), pages 228-250, June.
    9. Ndikumana, Léonce & Pickbourn, Lynda, 2017. "The Impact of Foreign Aid Allocation on Access to Social Services in sub-Saharan Africa: The Case of Water and Sanitation," World Development, Elsevier, vol. 90(C), pages 104-114.
    10. Belinda Archibong & Francis Annan, 2017. "Disease and Gender Gaps in Human Capital Investment: Evidence from Niger's 1986 Meningitis Epidemic," American Economic Review, American Economic Association, vol. 107(5), pages 530-535, May.
    11. repec:mpr:mprres:6928 is not listed on IDEAS
    12. Bandiera,Oriana & Buehren,Niklas & Goldstein,Markus P. & Rasul,Imran & Smurra,Andrea, 2019. "The Economic Lives of Young Women in the Time of Ebola : Lessons from an Empowerment Program," Policy Research Working Paper Series 8760, The World Bank.
    13. Dietrich, Simone, 2011. "The Politics of Public Health Aid: Why Corrupt Governments Have Incentives to Implement Aid Effectively," World Development, Elsevier, vol. 39(1), pages 55-63, January.
    14. Fitzpatrick, Anne & Beg, Sabrin & Derksen, Laura & Karing, Anne & Kerwin, Jason & Lucas, Adrienne M. & Ordaz Reynoso, Natalia & Squires, Munir, 2021. "Health knowledge and non-pharmaceutical interventions during the Covid-19 pandemic in Africa," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 33-53.
    15. Bloom, David E. & Mahal, Ajay S., 1997. "Does the AIDS epidemic threaten economic growth?," Journal of Econometrics, Elsevier, vol. 77(1), pages 105-124, March.
    16. Samuel Bazzi & Arya Gaduh & Alexander D. Rothenberg & Maisy Wong, 2016. "Skill Transferability, Migration, and Development: Evidence from Population Resettlement in Indonesia," American Economic Review, American Economic Association, vol. 106(9), pages 2658-2698, September.
    17. Edward Miguel & Michael Kremer, 2004. "Worms: Identifying Impacts on Education and Health in the Presence of Treatment Externalities," Econometrica, Econometric Society, vol. 72(1), pages 159-217, January.
    18. Boone, Peter, 1996. "Politics and the effectiveness of foreign aid," European Economic Review, Elsevier, vol. 40(2), pages 289-329, February.
    19. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    20. Achyuta Adhvaryu & Prashant Bharadwaj & James Fenske & Anant Nyshadham & Richard Stanley, 2016. "Dust and Death: Evidence from the West African Harmattan," CSAE Working Paper Series 2016-03, Centre for the Study of African Economies, University of Oxford.
    21. Hoyt Bleakley, 2007. "Disease and Development: Evidence from Hookworm Eradication in the American South," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(1), pages 73-117.
    22. Eric D. Gould & Victor Lavy & M. Daniele Paserman, 2011. "Sixty Years after the Magic Carpet Ride: The Long-Run Effect of the Early Childhood Environment on Social and Economic Outcomes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 78(3), pages 938-973.
    23. Erika Deserranno & Aisha Nansamba & Nancy Qian, 2020. "The Unintended Consequences of NGO-Provided Aid on Government Services in Uganda," NBER Working Papers 26928, National Bureau of Economic Research, Inc.
    24. Maffioli, Elisa M., 2021. "The political economy of health epidemics: Evidence from the Ebola outbreak," Journal of Development Economics, Elsevier, vol. 151(C).
    25. Daron Acemoglu & Simon Johnson, 2007. "Disease and Development: The Effect of Life Expectancy on Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 115(6), pages 925-985, December.
    26. Nathan Nunn & Nancy Qian, 2014. "US Food Aid and Civil Conflict," American Economic Review, American Economic Association, vol. 104(6), pages 1630-1666, June.
    27. Vernon Henderson & Adam Storeygard & David N. Weil, 2011. "A Bright Idea for Measuring Economic Growth," American Economic Review, American Economic Association, vol. 101(3), pages 194-199, May.
    28. Mishra, Prachi & Newhouse, David, 2009. "Does health aid matter?," Journal of Health Economics, Elsevier, vol. 28(4), pages 855-872, July.
    29. Hannes Öhler & Mario Negre & Lodewijk Smets & Renzo Massari & Željko Bogetić, 2019. "Putting your money where your mouth is: Geographic targeting of World Bank projects to the bottom 40 percent," PLOS ONE, Public Library of Science, vol. 14(6), pages 1-19, June.
    30. Kwabena Gyimah-Brempong, 2015. "Do African Countries Get Health from Health Aid?," Journal of African Development, African Finance and Economic Association (AFEA), vol. 17(2), pages 105-142.
    31. Marcos A. Rangel & Tom S. Vogl, 2019. "Agricultural Fires and Health at Birth," The Review of Economics and Statistics, MIT Press, vol. 101(4), pages 616-630, October.
    32. Conley, T. G., 1999. "GMM estimation with cross sectional dependence," Journal of Econometrics, Elsevier, vol. 92(1), pages 1-45, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francis Annan & Belinda Archibong & Uche Ekhator-Mobayode, 2023. "The Epidemic Effect: Epidemics, Institutions and Human Capital Development," Opportunity and Inclusive Growth Institute Working Papers 076, Federal Reserve Bank of Minneapolis.
    2. Juergen Bitzer & Erkan Goeren, 2018. "Foreign Aid and Subnational Development: A Grid Cell Analysis," Working Papers V-407-18, University of Oldenburg, Department of Economics, revised Mar 2018.
    3. Mevlude Akbulut-Yuksel & Belgi Turan, 2013. "Left behind: intergenerational transmission of human capital in the midst of HIV/AIDS," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1523-1547, October.
    4. Kotsadam, Andreas & Østby, Gudrun & Rustad, Siri Aas & Tollefsen, Andreas Forø & Urdal, Henrik, 2018. "Development aid and infant mortality. Micro-level evidence from Nigeria," World Development, Elsevier, vol. 105(C), pages 59-69.
    5. Belgi Turan, 2020. "Life expectancy and economic development: Evidence from microdata," Review of Development Economics, Wiley Blackwell, vol. 24(3), pages 949-972, August.
    6. Temple, Jonathan R.W., 2010. "Aid and Conditionality," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4415-4523, Elsevier.
    7. Breitwieser, Anja & Wick, Katharina, 2016. "What We Miss By Missing Data: Aid Effectiveness Revisited," World Development, Elsevier, vol. 78(C), pages 554-571.
    8. David E. Bloom & Michael Kuhn & Klaus Prettner, 2022. "Modern Infectious Diseases: Macroeconomic Impacts and Policy Responses," Journal of Economic Literature, American Economic Association, vol. 60(1), pages 85-131, March.
    9. Sebastian Galiani & Stephen Knack & Lixin Colin Xu & Ben Zou, 2017. "The effect of aid on growth: evidence from a Quasi-experiment," Journal of Economic Growth, Springer, vol. 22(1), pages 1-33, March.
    10. Chris Doucouliagos & Jack Hennessy & Debdulal Mallick, 2021. "Health aid, governance and infant mortality," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 184(2), pages 761-783, April.
    11. William Easterly, 2009. "Can the West Save Africa?," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 373-447, June.
    12. Didier Wayoro & Léonce Ndikumana, 2020. "Impact of development aid on infant mortality: Micro‐level evidence from Côte d'Ivoire," African Development Review, African Development Bank, vol. 32(3), pages 432-445, September.
    13. Beniamino Callegari & Christophe Feder, 2022. "The long-term economic effects of pandemics: toward an evolutionary approach [Epidemics and trust: the case of the Spanish flu]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 31(3), pages 715-735.
    14. Beniamino Callegari & Christophe Feder, 2022. "A Literature Review of Pandemics and Development: the Long-Term Perspective," Economics of Disasters and Climate Change, Springer, vol. 6(1), pages 183-212, March.
    15. Aurore Gary & Mathilde Maurel, 2015. "Donors’ Policy Consistency and Economic Growth," Kyklos, Wiley Blackwell, vol. 68(4), pages 511-551, November.
    16. Anthony Mveyange & Christian Skovsgaard & Tine Lesner, 2015. "Does HIV/AIDS matter for economic growth in sub-Saharan Africa?," WIDER Working Paper Series wp-2015-086, World Institute for Development Economic Research (UNU-WIDER).
    17. Huanhuan Zheng & Chen Li, 2022. "Can money buy friendship?—Evidence from the US and China’s competition for influence through foreign aid," The World Economy, Wiley Blackwell, vol. 45(10), pages 3224-3245, October.
    18. Emily Oster & Ira Shoulson & E. Ray Dorsey, 2013. "Limited Life Expectancy, Human Capital and Health Investments," American Economic Review, American Economic Association, vol. 103(5), pages 1977-2002, August.
    19. Bharti, Nitin Kumar & Roy, Sutanuka, 2023. "The early origins of judicial stringency in bail decisions: Evidence from early childhood exposure to Hindu-Muslim riots in India," Journal of Public Economics, Elsevier, vol. 221(C).
    20. Kazianga, Harounan & Masters, William A. & McMillan, Margaret S., 2014. "Disease control, demographic change and institutional development in Africa," Journal of Development Economics, Elsevier, vol. 110(C), pages 313-326.

    More about this item

    Keywords

    Epidemic; Disease; Vaccination; Aid; WHO; World bank; Africa;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • H84 - Public Economics - - Miscellaneous Issues - - - Disaster Aid
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jeborg:v:211:y:2023:i:c:p:549-566. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jebo .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.