Health Aid, Governance and Infant Mortality

46 Pages Posted: 21 May 2019

See all articles by Hristos Doucouliagos

Hristos Doucouliagos

Deakin University - School of Accounting, Economics and Finance

Jack Hennessy

Deakin University

Debdulal Mallick

Deakin University - Faculty of Business and Law

Date Written: February 2019

Abstract

We investigate the impact of health aid on infant mortality conditional on the quality of governance in 96 recipient countries. Our analysis applies the long difference estimator and instrumental variable estimation, with aid instrumented by donor government fractionalization interacted with the probability of allocating health aid to a recipient nation. The effectiveness of health aid in reducing infant mortality is conditional on good governance (measured either as government effectiveness or control of corruption). Specifically, health aid to a recipient nation that experiences a one standard deviation improvement in government effectiveness reduces infant mortality by about 4 percent. Our findings reaffirm the importance of improving the quality of governance in recipient nations.

Keywords: health aid, infant mortality, good governance

JEL Classification: F35, I15

Suggested Citation

Doucouliagos, Chris (Hristos) and Hennessy, Jack and Mallick, Debdulal, Health Aid, Governance and Infant Mortality (February 2019). IZA Discussion Paper No. 12166, Available at SSRN: https://ssrn.com/abstract=3390153

Chris (Hristos) Doucouliagos (Contact Author)

Deakin University - School of Accounting, Economics and Finance ( email )

Burwood, Victoria 3215
Australia

Jack Hennessy

Deakin University ( email )

75 Pigdons Road
Victoria, 3216
Australia

Debdulal Mallick

Deakin University - Faculty of Business and Law ( email )

Burwood, Victoria 3215
Australia

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