IDEAS home Printed from https://ideas.repec.org/a/wly/hlthec/v27y2018i2p320-332.html
   My bibliography  Save this article

What goes wrong with the allocation of domestic and international resources for HIV?

Author

Listed:
  • Olivier C. Sterck

Abstract

This paper examines how domestic and international financing for HIV is, and ought to be, distributed. We build a theoretical framework that decomposes domestic and international financing for HIV into nonlinear functions of national income, HIV prevalence, and government effectiveness. We test this model, paying particular attention to nonlinearities and to problems of bad controls, multicollinearity, and reverse causality. Finally, we use the fitted values of quartile regressions to study how much countries could reasonably pay domestically and how much they should receive from donors. Worryingly, countries with higher financial means receive on average more aid per PLHIV than very poor ones, and countries with higher HIV prevalence receive on average less aid per people living with HIV. The normative analysis concludes that US$3.08 billion of fiscal space could be created in LIC and MIC. We identify the countries that could be allocated more aid.

Suggested Citation

  • Olivier C. Sterck, 2018. "What goes wrong with the allocation of domestic and international resources for HIV?," Health Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 320-332, February.
    • Handle: RePEc:wly:hlthec:v:27:y:2018:i:2:p:320-332
    DOI: 10.1002/hec.3550
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/hec.3550
    Download Restriction: no
    File URL: https://libkey.io/10.1002/hec.3550?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jerry Hausman, 2001. "Mismeasured Variables in Econometric Analysis: Problems from the Right and Problems from the Left," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 57-67, Fall.
    2. Michael A. Clemens & Steven Radelet & Rikhil R. Bhavnani & Samuel Bazzi, 2012. "Counting Chickens when they Hatch: Timing and the Effects of Aid on Growth," Economic Journal, Royal Economic Society, vol. 122(561), pages 590-617, June.
    3. Oster, Emily, 2012. "HIV and sexual behavior change: Why not Africa?," Journal of Health Economics, Elsevier, vol. 31(1), pages 35-49.
    4. William Robert Reed, 2015. "On the Practice of Lagging Variables to Avoid Simultaneity," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 77(6), pages 897-905, December.
    5. Richard K. Green & Stephen Malpezzi & Stephen K. Mayo, 2005. "Metropolitan-Specific Estimates of the Price Elasticity of Supply of Housing, and Their Sources," American Economic Review, American Economic Association, vol. 95(2), pages 334-339, May.
    6. Collier, Paul & Dollar, David, 2001. "Can the World Cut Poverty in Half? How Policy Reform and Effective Aid Can Meet International Development Goals," World Development, Elsevier, vol. 29(11), pages 1787-1802, November.
    7. Olivier Sterck & Max Roser & Stefan Thewissen, 2017. "Turning the paradigm of aid allocation on its head," CSAE Working Paper Series 2017-03, Centre for the Study of African Economies, University of Oxford.
    8. Remme, Michelle & Siapka, Mariana & Sterck, Olivier & Ncube, Mthuli & Watts, Charlotte & Vassall, Anna, 2016. "Financing the HIV response in sub-Saharan Africa from domestic sources: Moving beyond a normative approach," Social Science & Medicine, Elsevier, vol. 169(C), pages 66-76.
    9. Collier, Paul & Dollar, David, 2002. "Aid allocation and poverty reduction," European Economic Review, Elsevier, vol. 46(8), pages 1475-1500, September.
    10. Elizabeth Lule & Markus Haacker, 2012. "The Fiscal Dimension of HIV/AIDS in Botswana, South Africa, Swaziland, and Uganda," World Bank Publications - Books, The World Bank Group, number 2382.
    11. Richard Manning & Olivier Sterck, 2018. "Rethinking international and domestic financing for HIV in low†and middle†income countries," Development Policy Review, Overseas Development Institute, vol. 36(4), pages 433-444, July.
    12. Anna Vassall & Michelle Remme & Charlotte Watts & Timothy Hallett & Mariana Siapka & Peter Vickerman & Fern Terris-Prestholt & Markus Haacker & Lori Heise & Andy Haines & Rifat Atun & Peter Piot, 2013. "Financing Essential HIV Services: A New Economic Agenda," PLOS Medicine, Public Library of Science, vol. 10(12), pages 1-6, December.
    13. William Easterly, 2003. "Can Foreign Aid Buy Growth?," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 23-48, Summer.
    14. Omar Galárraga & Veronika J Wirtz & Yared Santa-Ana-Tellez & Eline L Korenromp, 2013. "Financing HIV Programming: How Much Should Low- And Middle-Income Countries and their Donors Pay?," PLOS ONE, Public Library of Science, vol. 8(7), pages 1-11, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Iemmi, Valentina, 2021. "Global collective action in mental health financing: Allocation of development assistance for mental health in 142 countries, 2000–2015," Social Science & Medicine, Elsevier, vol. 287(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thi Kim Cuong PHAM & Ngoc-Sang PHAM, 2017. "Economic growth and escaping the poverty trap: how does development aid work?," Working Papers P197, FERDI.
    2. Tarp, Finn, 2006. "Aid and Development," MPRA Paper 13171, University Library of Munich, Germany.
    3. Pham, Ngoc-Sang & Pham, Thi Kim Cuong, 2020. "Effects of foreign aid on the recipient country’s economic growth," Journal of Mathematical Economics, Elsevier, vol. 86(C), pages 52-68.
    4. Maria Rosaria Carillo & Valentina Chiariello & Rita De Siano, 2016. "Women in Parliaments and Aid effectiveness in Sub-Saharan African countries," Discussion Papers 5_2016, CRISEI, University of Naples "Parthenope", Italy.
    5. Sterck, Olivier, 2016. "Natural resources and the spread of HIV/AIDS: Curse or blessing?," Social Science & Medicine, Elsevier, vol. 150(C), pages 271-278.
    6. Stijn Claessens & Danny Cassimon, 2007. "Empirical evidence on the new international aid architecture," WEF Working Papers 0026, ESRC World Economy and Finance Research Programme, Birkbeck, University of London.
    7. Juergen Bitzer & Erkan Goeren, 2018. "Foreign Aid and Subnational Development: A Grid Cell Analysis," Working Papers V-407-18, University of Oldenburg, Department of Economics, revised Mar 2018.
    8. Hicks, Robert L. & Parks, Bradley C. & Tierney, Michael J., 2005. "Explaining the Allocation of Bilateral and Multilateral Environmental Aid to Developing Countries," 2005 Annual meeting, July 24-27, Providence, RI 19346, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Temple, Jonathan R.W., 2010. "Aid and Conditionality," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4415-4523, Elsevier.
    10. Strand, Jon, 2009. ""Revenue management"effects related to financial flows generated by climate policy," Policy Research Working Paper Series 5053, The World Bank.
    11. Patrick GUILLAUMONT, 2008. "Adapting Aid Allocation Criteria to Development Goals," Working Papers P01, FERDI.
    12. Mark McGillivray, 2006. "Aid Allocation and Fragile States," WIDER Working Paper Series DP2006-01, World Institute for Development Economic Research (UNU-WIDER).
    13. Ali, Murad, 2017. "Implementing the 2030 Agenda in Pakistan: the critical role of an enabling environment in the mobilisation of domestic and external resources," IDOS Discussion Papers 14/2017, German Institute of Development and Sustainability (IDOS).
    14. Almuth Scholl, 2009. "Aid Effectiveness and Limited Enforceable Conditionality," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 12(2), pages 377-391, April.
    15. Vlad Pavlov & Craig Sugden, 2006. "Aid and Growth in the Pacific Islands," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 20(2), pages 38-55, November.
    16. Eskander Alvi & Aberra Senbeta, 2012. "Foreign Aid: Good for Investment, Bad for Productivity," Oxford Development Studies, Taylor & Francis Journals, vol. 40(2), pages 139-161, June.
    17. Robert Gillanders, 2016. "The Effects of Foreign Aid in Sub-Saharan Africa," The Economic and Social Review, Economic and Social Studies, vol. 47(3), pages 339-360.
    18. Patrick Guillaumont & Laurent Wagner, 2014. "Aid Effectiveness for Poverty Reduction: Lessons from Cross‑country Analyses, with a Special Focus on Vulnerable Countries," Revue d’économie du développement, De Boeck Université, vol. 22(HS01), pages 217-261.
    19. Wamboye, Evelyn & Adekola, Abel, 2013. "Foreign Aid, Legal Origin, Economic Growth and Africa’s Least Developed Countries," MPRA Paper 47846, University Library of Munich, Germany.
    20. Cuong Le Van & Ngoc-Sang Pham & Thi Kim Cuong Pham, 2021. "Development loans, poverty trap, and economic dynamics," Working Papers halshs-03456281, HAL.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:hlthec:v:27:y:2018:i:2:p:320-332. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/5749 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.