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Throwing foreign aid at HIV/AIDS in developing countries: Missing the target?

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  • Nunnenkamp, Peter
  • Öhler, Hannes

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

  • Nunnenkamp, Peter & Öhler, Hannes, 2010. "Throwing foreign aid at HIV/AIDS in developing countries: Missing the target?," Center for European, Governance and Economic Development Research Discussion Papers 111, University of Goettingen, Department of Economics.
  • Handle: RePEc:zbw:cegedp:111
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    References listed on IDEAS

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    1. Alesina, Alberto & Devleeschauwer, Arnaud & Easterly, William & Kurlat, Sergio & Wacziarg, Romain, 2003. "Fractionalization," Journal of Economic Growth, Springer, vol. 8(2), pages 155-194, June.
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    Citations

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    Cited by:

    1. Marlène Guillon & Josselin Thuilliez, 2015. "HIV and Rational risky behaviors: a systematic review of published empirical literature (1990-2013)," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01222571, HAL.
    2. repec:eee:jfpoli:v:74:y:2018:i:c:p:100-116 is not listed on IDEAS
    3. repec:eee:wdevel:v:100:y:2017:i:c:p:16-30 is not listed on IDEAS
    4. Julian Donaubauer & Peter Nunnenkamp, 2016. "Is Aid for Infrastructure Effective? A Difference-in-Difference-in-Differences Approach," Economics Bulletin, AccessEcon, vol. 36(2), pages 857-870.
    5. Donaubauer, Julian & Herzer, Dierk & Nunnenkamp, Peter, 2016. "The effectiveness of aid under post-conflict conditions: A sector-specific analysis," Kiel Working Papers 2065, Kiel Institute for the World Economy (IfW).
    6. Ndikumana, Léonce & Pickbourn, Lynda, 2017. "The Impact of Foreign Aid Allocation on Access to Social Services in sub-Saharan Africa: The Case of Water and Sanitation," World Development, Elsevier, vol. 90(C), pages 104-114.
    7. Minasyan, Anna & Nunnenkamp, Peter & Richert, Katharina, 2017. "Does Aid Effectiveness Depend on the Quality of Donors?," World Development, Elsevier, vol. 100(C), pages 16-30.
    8. Thomas, RA, 2014. "Foreign aid and HIV infections: evidence of causal effects from country-level panel data," Working Papers 18673, Imperial College, London, Imperial College Business School.
    9. Pallas, Sarah Wood & Ruger, Jennifer Prah, 2017. "Effects of donor proliferation in development aid for health on health program performance: A conceptual framework," Social Science & Medicine, Elsevier, vol. 175(C), pages 177-186.

    More about this item

    Keywords

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

    JEL classification:

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

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