Health Aid and Child Mortality in Developing Countries: Accounting for Transmission Mechanisms
. Yogo, Thierry U
African Economic Research consortium
Using a sample of 94 developing countries over the period 1990-2011, this paper examines both the direct and indirect effect of health aid on child mortality. We test for this relationship using a dynamic panel data model. The results reveal that health aid decreases infant mortality in developing countries. More specifically, a 1% increase in health aid per capita leads to a 0.047% decrease in child mortality over five years. This effect operates mainly through the improvement of primary education completion rate of female and governance. However, the magnitude of the effects is too small if developing countries would like to achieve Millenium Development Goals (MDGs through) additional health aid. The policy implications of the paper are further discussed.