Aid Externalities: Evidence from PEPFAR in Africa

Melissa M. Lee; Melina Platas Izama

doi:10.1016/j.worlddev.2014.10.001

Aid Externalities: Evidence from PEPFAR in Africa

Melissa M. Lee, Melina Platas Izama

Political Science

Research output: Contribution to journal › Article › peer-review

Abstract

Do targeted aid programs have unintended consequences outside of the target issue area? We investigate this question with an examination of one of the largest targeted aid programs in the world: the President's Emergency Plan for AIDS Relief (PEPFAR). Critics of PEPFAR worry that a targeted program focusing on single diseases has a negative externality, in which the influx of massive amounts of target aid damages broader public health systems in countries that receive PEPFAR funds. Using a difference-in-differences identification strategy, we find statistical evidence that supports critics of targeted aid.

Original language	English (US)
Pages (from-to)	281-294
Number of pages	14
Journal	World Development
Volume	67
DOIs	https://doi.org/10.1016/j.worlddev.2014.10.001
State	Published - Mar 1 2015

Keywords

Africa
Externalities
Foreign aid
Health
State capacity
Sub-Saharan Africa

ASJC Scopus subject areas

Geography, Planning and Development
Development
Sociology and Political Science
Economics and Econometrics

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10.1016/j.worlddev.2014.10.001

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title = "Aid Externalities: Evidence from PEPFAR in Africa",

abstract = "Do targeted aid programs have unintended consequences outside of the target issue area? We investigate this question with an examination of one of the largest targeted aid programs in the world: the President's Emergency Plan for AIDS Relief (PEPFAR). Critics of PEPFAR worry that a targeted program focusing on single diseases has a negative externality, in which the influx of massive amounts of target aid damages broader public health systems in countries that receive PEPFAR funds. Using a difference-in-differences identification strategy, we find statistical evidence that supports critics of targeted aid.",

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AB - Do targeted aid programs have unintended consequences outside of the target issue area? We investigate this question with an examination of one of the largest targeted aid programs in the world: the President's Emergency Plan for AIDS Relief (PEPFAR). Critics of PEPFAR worry that a targeted program focusing on single diseases has a negative externality, in which the influx of massive amounts of target aid damages broader public health systems in countries that receive PEPFAR funds. Using a difference-in-differences identification strategy, we find statistical evidence that supports critics of targeted aid.

KW - Africa

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KW - Foreign aid

KW - Health

KW - State capacity

KW - Sub-Saharan Africa

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Aid Externalities: Evidence from PEPFAR in Africa

Abstract

Keywords

ASJC Scopus subject areas

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