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

Author

Listed:
  • Peter Nunnenkamp
  • Hannes Öhler

Abstract

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 to an extent that would have reduced the number of people living with HIV. By contrast, ODA has contributed effectively to the medical care of infected people. However, conclusive evidence on significant treatment effects on AIDS-related deaths only exists for the major bilateral source of ODA, the United States. In particular, targeted US assistance programs appear to be more effective than the activities of multilateral organizations

Suggested Citation

  • Peter Nunnenkamp & Hannes Öhler, 2010. "Throwing Foreign Aid at HIV/AIDS in Developing Countries: Missing the Target?," Kiel Working Papers 1642, Kiel Institute for the World Economy.
  • Handle: RePEc:kie:kieliw:1642
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    File URL: https://www.ifw-members.ifw-kiel.de/publications/throwing-foreign-aid-at-hiv-aids-in-developing-countries-missing-the-target/kwp_1642.pdf
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    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Does Foreign Aid Reduce HIV/AIDS Infection Rates?
      by Ariel Goldring in Free Market Mojo on 2010-08-31 15:45:05

    More about this item

    Keywords

    HIV prevalence; AIDS-related deaths; official development assistance; aid effectiveness; major donors; difference-in-difference-in-differences;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • I19 - Health, Education, and Welfare - - Health - - - Other

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