Do African Countries Get Health from Health Aid?

Abstract

This paper uses panel data and a dynamic panel data (DPD) estimator to investigate the effects of health aid on health outcomes and health expenditures in African countries. Health aid is found to have a positive and significant effect on health outcomes in African countries. Moreover, health aid is more effective at improving health outcomes for countries that increase domestic health expenditure and for those with better governance. The results also show that health aid marginally increases domestic health expenditure in African countries, suggesting that the effect of health aid on health outcomes may be larger than the direct effect.