Effect of Aid that Targets Institution-Building in the Health Sector

There is increasing evidence for the negative effect of external aid programs on public health. Accordingly, it is essential to research how donors could effectively allocate their aid. It is established that institution-building in the health sector is crucial for enhancing public health, for example by fostering accountability and transparency. Aid that is spent on institution-building is expected to have a positive effect on public health. However, there is no empirical evidence for that, and therefore, this research contributes to the existing literature by answering the following research question: What is the effect of aid targeting institution building in the health sector on public health outcomes? Several linear regressions are performed to test the effect of Official Development Assistance for institution-building in the health sector on infant mortality, life expectancy, and immunization rates. The overall research findings show a positive, but small and insignificant...Show moreThere is increasing evidence for the negative effect of external aid programs on public health. Accordingly, it is essential to research how donors could effectively allocate their aid. It is established that institution-building in the health sector is crucial for enhancing public health, for example by fostering accountability and transparency. Aid that is spent on institution-building is expected to have a positive effect on public health. However, there is no empirical evidence for that, and therefore, this research contributes to the existing literature by answering the following research question: What is the effect of aid targeting institution building in the health sector on public health outcomes? Several linear regressions are performed to test the effect of Official Development Assistance for institution-building in the health sector on infant mortality, life expectancy, and immunization rates. The overall research findings show a positive, but small and insignificant relationship between health institutional aid and public health.Show less

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Effect of Aid that Targets Institution-Building in the Health Sector