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Aid Fragmentation and Effectiveness for Infant and Child Mortality and Primary School Completion

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  • Furukawa, Mitsuaki
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    This paper examined empirically the overall effect of the project aid fragmentation in the health and education sectors. It focused on the infant and child mortality rate for the health sector and the primary school completion rate for the education sector because they are flagged as important indicators of the MDGs. The research questions in this paper are whether the mitigation of project aid fragmentation leads to the improvement of the two indicators and whether the result differs between health and education. The major findings are the followings: Even if project aid fragmentation is reduced, there may be no reduction in infant and child mortality rates. On the contrary, The rate will be the worst at the mid-range of fragmentation. On the other hand, the reduction of aid fragmentation in countries which receive relatively high external aid will positively impact the primary school completion rate. These findings lead to the conclusion that the effectiveness of aid-fragmentation reduction differs from one sector to another and depends on the degree of aid dependence.

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    File URL: http://hdl.handle.net/10685/146
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    File URL: https://jicari.repo.nii.ac.jp/?action=repository_uri&item_id=735&file_id=9&file_no=1
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    Paper provided by JICA Research Institute in its series Working Papers with number 83.

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    Date of creation: 30 Oct 2014
    Handle: RePEc:jic:wpaper:83
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    1. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    2. Holtz-Eakin, Douglas & Newey, Whitney & Rosen, Harvey S, 1989. "The Revenues-Expenditures Nexus: Evidence from Local Government Data," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(2), pages 415-429, May.
    3. Djankov, Simeon & Montalvo, Jose G. & Reynal-Querol, Marta, 2009. "Aid with multiple personalities," Journal of Comparative Economics, Elsevier, vol. 37(2), pages 217-229, June.
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    13. Hudson, John, 2012. "Consequences of Aid Volatility for Macroeconomic Management and Aid Effectiveness," WIDER Working Paper Series 035, World Institute for Development Economic Research (UNU-WIDER).
    14. Kurt Annen & Luc Moers, 2012. "Donor Competition for Aid Impact, and Aid Fragmentation," IMF Working Papers 12/204, International Monetary Fund.
    15. Wei Wang & Lungā€Fei Lee, 2013. "Estimation of spatial autoregressive models with randomly missing data in the dependent variable," Econometrics Journal, Royal Economic Society, vol. 16(1), pages 73-102, February.
    16. Neanidis, Kyriakos C. & Varvarigos, Dimitrios, 2009. "The allocation of volatile aid and economic growth: Theory and evidence," European Journal of Political Economy, Elsevier, vol. 25(4), pages 447-462, December.
    17. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
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