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The impact of aid on health outcomes in Uganda

Author

Listed:
  • Tonny Odokonyero
  • Robert Marty
  • Tony Muhumuza
  • Alex T. Ijjo
  • Godfrey Owot Moses

Abstract

The health sector has attracted significant foreign aid; however, evidence on the effectiveness of this support is mixed. This paper combines household panel data with geographically referenced subnational foreign aid data to investigate the contribution of health aid to health outcomes in Uganda. Using a difference‐in‐differences approach, we find that aid had a strong effect on reducing the productivity burden of disease indicated by days of productivity lost due to illness but was less effective in reducing disease prevalence. Consequently, health aid appeared to primarily quicken recovery times rather than prevent disease. In addition, we find that health aid was most beneficial to individuals who lived closest to aid projects. Apart from the impact of aid, we find that aid tended to not be targeted to localities with the worse socioeconomic conditions. Overall, the results highlight the importance of allocating aid close to subnational areas with greater need to enhance aid effectiveness.

Suggested Citation

  • Tonny Odokonyero & Robert Marty & Tony Muhumuza & Alex T. Ijjo & Godfrey Owot Moses, 2018. "The impact of aid on health outcomes in Uganda," Health Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 733-745, April.
    • Handle: RePEc:wly:hlthec:v:27:y:2018:i:4:p:733-745
    DOI: 10.1002/hec.3632
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    References listed on IDEAS

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    Cited by:

    1. Cruzatti C., John & Dreher, Axel & Matzat, Johannes, 2023. "Chinese aid and health at the country and local level," World Development, Elsevier, vol. 167(C).
    2. Durevall, Dick & Isaksson, Ann-Sofie, 2022. "Aid and child health Local effects of aid on stunting in Malawi," Working Papers in Economics 830, University of Gothenburg, Department of Economics.
    3. Munyanyi, Musharavati Ephraim & Awaworyi Churchill, Sefa, 2022. "Foreign aid and energy poverty: Sub-national evidence from Senegal," Energy Economics, Elsevier, vol. 108(C).
    4. Öhler, Hannes, 2017. "A micro-level analysis of the effects of aid fragmentation and aid alignment," IDOS Discussion Papers 7/2017, German Institute of Development and Sustainability (IDOS).
    5. Hannes Öhler & Mario Negre & Lodewijk Smets & Renzo Massari & Željko Bogetić, 2019. "Putting your money where your mouth is: Geographic targeting of World Bank projects to the bottom 40 percent," PLOS ONE, Public Library of Science, vol. 14(6), pages 1-19, June.
    6. Didier Wayoro & Leonce Ndikumana, 2019. "Impact of Development aid on infant mortality : Micro-level evidence from Cote d’Ivoire," UMASS Amherst Economics Working Papers 2019-07, University of Massachusetts Amherst, Department of Economics.
    7. Echica van Kelle & Sarah I. Spronk & Denis Kibira & Carolien J. Aantjes, 2023. "Rethinking the donor's role in strengthening health systems through sexual and reproductive health and rights partnerships: A qualitative analysis of Ugandan case studies," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(7), pages 1711-1730, October.
    8. Lanati, Mauro & Sanfilippo, Marco & Santi, Filippo, 2023. "Aid and internal migration in Malawi," World Development, Elsevier, vol. 162(C).
    9. Lamissa Barro & Jean-Louis Arcand, 2021. "Projets de développement, conditions de vie et activité économique dans les pays du G5 Sahel," Working Papers hal-03247056, HAL.
    10. Mandon, Pierre & Woldemichael, Martha Tesfaye, 2023. "Has Chinese aid benefited recipient countries? Evidence from a meta-regression analysis," World Development, Elsevier, vol. 166(C).
    11. Gnangnon, Sèna Kimm, 2021. "Effect of Development Aid on Productive Capacities," EconStor Preprints 233973, ZBW - Leibniz Information Centre for Economics.
    12. Didier Wayoro & Léonce Ndikumana, 2020. "Impact of development aid on infant mortality: Micro‐level evidence from Côte d'Ivoire," African Development Review, African Development Bank, vol. 32(3), pages 432-445, September.
    13. Pickbourn, Lynda & Caraher, Raymond & Ndikumana, Léonce, 2022. "Does project-level foreign aid increase access to improved water sources? Evidence from household panel data in Uganda," World Development, Elsevier, vol. 158(C).

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