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

  • Nunnenkamp, Peter
  • Öhler, Hannes

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. The results regarding the medical care of infected people are mixed: evidence on significant treatment effects on AIDS-related deaths exists for the major bilateral source of ODA, the United States, in sharp contrast to ODA from multilateral organizations.

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Article provided by Elsevier in its journal World Development.

Volume (Year): 39 (2011)
Issue (Month): 10 ()
Pages: 1704-1723

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Handle: RePEc:eee:wdevel:v:39:y:2011:i:10:p:1704-1723
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  1. 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.
  2. Mark McGillivray & Simon Feeny & Niels Hermes & Robert Lensink, 2006. "Controversies over the impact of development aid: it works; it doesn't; it can, but that depends …," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(7), pages 1031-1050.
  3. 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.
  4. 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.
  5. 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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  7. Alesina, Alberto, et al, 2003. " Fractionalization," Journal of Economic Growth, Springer, vol. 8(2), pages 155-94, June.
  8. 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.
  9. 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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  11. Morfit, N. Simon, 2011. ""AIDS is Money": How Donor Preferences Reconfigure Local Realities," World Development, Elsevier, vol. 39(1), pages 64-76, January.
  12. 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.
  13. 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.
  14. 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.
  15. Edoardo Gaffeo, 2003. "The Economics of HIV/AIDS: A Survey," Development Policy Review, Overseas Development Institute, vol. 21(1), pages 27-49, 01.
  16. 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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