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

  • Peter Nunnenkamp
  • Hannes Öhler

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

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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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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1642.

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Length: 26 pages
Date of creation: Aug 2010
Date of revision:
Handle: RePEc:kie:kieliw:1642
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  1. 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.
  2. 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.
  3. Dollar, David & Alesina, Alberto, 2000. "Who Gives Foreign Aid to Whom and Why?," Scholarly Articles 4553020, Harvard University Department of Economics.
  4. 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.
  5. Axel Dreher & Peter Nunnenkamp & Rainer Thiele, 2006. "Does Aid for Education Educate Children? Evidence from Panel Data," KOF Working papers 06-146, KOF Swiss Economic Institute, ETH Zurich.
  6. Alesina, Alberto & Devleeschauwer, Arnaud & Wacziarg, Romain & Kurlat, Sergio & Easterly, William, 2003. "Fractionalization," Scholarly Articles 4553003, Harvard University Department of Economics.
  7. Morfit, N. Simon, 2011. ""AIDS is Money": How Donor Preferences Reconfigure Local Realities," World Development, Elsevier, vol. 39(1), pages 64-76, January.
  8. Edoardo Gaffeo, 2003. "The Economics of HIV/AIDS: A Survey," Development Policy Review, Overseas Development Institute, vol. 21(1), pages 27-49, 01.
  9. L. Randall Wray & Stephanie Bell, 2004. "Introduction," Chapters, in: Credit and State Theories of Money, chapter 1 Edward Elgar.
  10. 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.
  11. 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.
  12. 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.
  13. 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.
  14. Mishra, Prachi & Newhouse, David, 2009. "Does health aid matter?," Journal of Health Economics, Elsevier, vol. 28(4), pages 855-872, July.
  15. 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.
  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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