Abstract
Recent research suggests that an additional $1 of health aid would displace – or crowd out – nearly the same amount in a recipient governments’ 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 SWAp. We find that SWAp provides 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.
Original language | English |
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Pages (from-to) | 719-737 |
Number of pages | 19 |
Journal | Journal of Development Studies |
Volume | 54 |
Issue number | 4 |
DOIs | |
Publication status | Published - 2018 |
Externally published | Yes |
Keywords
- government health expenditure
- development assistance
- aid additionality
- aid fungibility
- crowding out
- displacement
- sector wide approach
- aid coordination