Kiel Working Papers, Kiel Institute for World Economics
No 1642:
Throwing Foreign Aid at HIV/AIDS in Developing Countries: Missing the Target?
Peter Nunnenkamp and Hannes Öhler
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
Keywords: HIV prevalence, AIDS-related deaths, official development assistance, aid effectiveness, major donors, difference-in-difference-in-differences; (follow links to similar papers)
JEL-Codes: F35,; I19; (follow links to similar papers)
26 pages, August 2010
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