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Has HIV/AIDS displaced other health funding priorities? Evidence from a new dataset of development aid for health

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Abstract

In recent times there has been a sense that HIV/AIDS control has been attracting a significantly larger portion of donor health funding to the extent that it crowds out funding for other health concerns. Although there is no doubt that HIV/AIDS control attracts a larger proportion of development assistance for health (DAH) and that HIV/AIDS should be a DAH priority, whether HIV/AIDS is actually diverting funding away from other health concerns has yet to be analyzed fully. To fill this vacuum, this study aims to test if a higher level of HIV/AIDS funding is related to a displacement in funding for other health concerns, and if yes, to quantify the magnitude of the displacement effect. Specifically, we consider whether HIV/AIDS DAH has displaced i) TB, ii) malaria iii) health sector and ‘other’ DAH in terms of the dollar amount received for aid. We consider this question within a regression framework controlling for time and recipient heterogeneity. We find displacement effects for malaria and health sector but not TB. In particular, the displacement effect for malaria is large and worrying.

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  • Grace Lordan, 2011. "Has HIV/AIDS displaced other health funding priorities? Evidence from a new dataset of development aid for health," Discussion Papers Series 422, School of Economics, University of Queensland, Australia.
  • Handle: RePEc:qld:uq2004:422
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    File URL: http://www.uq.edu.au/economics/abstract/422.pdf
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    1. Danziger, Renee, 1994. "The social impact of HIV/AIDS in developing countries," Social Science & Medicine, Elsevier, vol. 39(7), pages 905-917, October.
    2. 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.
    3. Mishra, Prachi & Newhouse, David, 2009. "Does health aid matter?," Journal of Health Economics, Elsevier, vol. 28(4), pages 855-872, July.
    4. Preble, Elizabeth A., 1990. "Impact of HIV/AIDS on African children," Social Science & Medicine, Elsevier, vol. 31(6), pages 671-680, January.
    5. Tammy L. Lewis, 2003. "Environmental Aid: Driven by Recipient Need or Donor Interests?," Social Science Quarterly, Southwestern Social Science Association, vol. 84(1), pages 144-161.
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    Cited by:

    1. Afridi, Muhammad Asim & Ventelou, Bruno, 2013. "Impact of health aid in developing countries: The public vs. the private channels," Economic Modelling, Elsevier, vol. 31(C), pages 759-765.
    2. Sweeney, Rohan & Mortimer, Duncan & Johnston, David W., 2014. "Do Sector Wide Approaches for health aid delivery lead to ‘donor-flight’? A comparison of 46 low-income countries," Social Science & Medicine, Elsevier, vol. 105(C), pages 38-46.

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