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The Impact of SWAps on Health Aid Displacement of Domestic Health Expenditure

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  • Rohan Sweeney
  • Marc Suhrcke
  • Yun Joo Jeon
  • Duncan Mortimer

Abstract

Recent research suggests that an additional $1 of health aid would displace – or crowd out – nearly the same amount in a recipient government’s own health expenditure. Implementing a Sector Wide Approach (SWAp) may exacerbate crowding out because recipient governments should face fewer constraints when allocating health aid. This paper uses rigorous panel data methods to investigate this hypothesised effect of SWAps. We find that SWAps provide not an exacerbating but a potentially protective effect, reducing displacement of government health expenditure. This suggests some aid dollars are more fungible than others, and the mechanism for aid delivery makes a difference.

Suggested Citation

  • Rohan Sweeney & Marc Suhrcke & Yun Joo Jeon & Duncan Mortimer, 2018. "The Impact of SWAps on Health Aid Displacement of Domestic Health Expenditure," Journal of Development Studies, Taylor & Francis Journals, vol. 54(4), pages 719-737, April.
    • Handle: RePEc:taf:jdevst:v:54:y:2018:i:4:p:719-737
    DOI: 10.1080/00220388.2017.1303670
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    Cited by:

    1. Gabani, Jacopo & Suhrcke, Marc & Neelsen, Sven & Eozenou, Patrick Hoang-Vu & Smitz, Marc-Francois, 2024. "Does health aid matter to financial risk protection? A regression analysis across 159 household surveys, 2000–2016," Social Science & Medicine, Elsevier, vol. 356(C).
    2. Maame Esi Woode & Duncan Mortimer & Rohan Sweeney, 2021. "The impact of health sector‐wide approaches on aid effectiveness and infant mortality," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(5), pages 826-844, July.

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