Anwar, Mumtaz and Rashid, Muhammad Khalid (2011): Effectiveness of foreign aid in the light of millennium development goal on the health sector: a case study of Pakistan. Published in: INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS , Vol. 3, No. 2 (15. June 2011): pp. 1992-2003.
Download (200kB) | Preview
Most of the developing countries are becoming more aid dependent with the passage of time. This bleak reality provokes debate on aid effectiveness. This paper analyzes the effectiveness of aid on the health sector of Pakistan over the period 1973-2008. The study focuses on the health sector in the light of Millennium Development Goal; reducing child mortality. We estimate an econometric model to test the short and long run relationship between foreign aid and infant mortality rate in the health sector. In this context, different tests i.e. Augumented Dickey Fuller test, Johansen Likelihood Ratio test and Vector Error Correction Method are used. The results indicate that there is short run and long run relationship between foreign aid and infant mortality rate. The results show that one percent increase in foreign aid will decrease the infant mortality rate by 0.4 percent. This study suggests that an increase aid in this sector will result in better health conditions.
|Item Type:||MPRA Paper|
|Original Title:||Effectiveness of foreign aid in the light of millennium development goal on the health sector: a case study of Pakistan|
|English Title:||Effectiveness of Foreign Aid in the Light of Millennium Development Goal on the Health Sector: A case study of Pakistan|
|Keywords:||Infant Mortality rate, Millennium Development Goal, Foreign Aid|
|Subjects:||F - International Economics > F3 - International Finance > F35 - Foreign Aid
I - Health, Education, and Welfare > I1 - Health > I10 - General
|Depositing User:||Mumtaz Anwar|
|Date Deposited:||12. Mar 2012 13:38|
|Last Modified:||09. Sep 2015 00:24|
Baldacci, E., Clements, B., Gupta, S., & Cui, Q., (2004). Social Spending, Human Capital and Growth in Developing Countries: Implications for Achieving the MDGs.
IMF Working Paper WP/04/217. International Monetary Fund, Washington, D.C.
Dickey, D.A., and William, A.F., (1979). “Distribution of the estimators for Auto Regressive time series with unit root”, Journal of the American Statistical Association, 74:366, 427-431
Dickey, D.A., and William, A.F. (1981). “Likelihood Ratio Statistics for Autoregressive time series with a unit root” Econometrica 49: 4, 1057-1072
Enders, W., (1995). “Applied Econometric Time Series”, John Wiley and sons Inc. NewYork
Engle, R.F and William, J. G., (1987). “Co-integration and error correction:Representation, Estimations and Testing”, Econometrica, Vol. 55, No. 2.
Filmer, D., Hammer, J., & Pritchett, L. (1997). Child Mortality and Public Spending on Health: How Much Does Money Matter? World Bank policy Research Working Paper No. 1864. Washigton, DC.
Gupta, S., Verhoeven, M., & Tiongson, E. (1999). Does Higher Government Spending Buy Better Results in Education and Health Care? IMF Working Paper WP/99/21.
International Monetary Fund, Washington, D.C.
Johansen, J., (1984). “Econometric Methods”, (Third Edition) Mc Graw. Hill Book Company.
Johansen, S., and Juselius, K., (1990). “Maximum Likelihood estimation and inference on co-integration with application to the demand for money”, Oxford Bulletin of Economics and Stastics, vol. 52, No. 2.
Mishra, P., & Newhouse, D. (2009). “Does Health Aid Matter?” Journal of Health Economics. Vol. 28: 855-872
OECD (2009). International Development Statistics, Online: Databases on Aid and Other Resource Flows. http//www.oecd.org/dataoecd/50/17/5037721.htm
Pakistan, Government of, (various issues). “Economic Survey, Islamabad”, Ministry of Finance, Economic Advisory Wing.
Thiele, R., Nunnenkamp, P., & Dreher, A. (2006). Sectoral Aid Priorities: Are Donors Really Doing Their Best to Achieve the Millennium Development Goals? Kiel Working Paper No. 1266. Kiel Institute for World Economics, Duesternbrooker Weng 120, D-24105 Kiel, Germany.
Wolf, S. (2007). Does Aid Improve Public Service Delivery? Review of World Economics, Vol. 143:4
World Bank, (2009). World Development Indicators CD-ROM. Washington, D.C.
World Bank, (2009). Reshaping Economic Geoghraphy.World Development Report. The World Bank, Washigton, D.C.