The purpose of this study is to conduct an empirical analysis on the effect of aid proliferation on government spending on health by the recipient nations using panel data and acquire information on the direction of future ODA operations. In this stud...
The purpose of this study is to conduct an empirical analysis on the effect of aid proliferation on government spending on health by the recipient nations using panel data and acquire information on the direction of future ODA operations. In this study, calculated excessive foreign aid index with regard to the health sector of Sub-Sahara African nations and conducted an empirical analysis on the effect of aid fragmentation on government spending on health sector.
The result of the analysis disclosed that aid fragmentation significantly reduced government spending on health. It is anticipated that such trend came from the mutual pursuit of profit between the attribute (the needs of the donor nation) of ODA projects after new businesses and the governments of recipient nations that want ODA funding. Because competitive and excessive supports in ODA projects induce distortion in the governmentbudget operation of the recipient nations and thereby trigger disutility in ODA projects, Based on the result of the analysis, We proposed to incorporate a more comprehensive deliberation with regard to the capacity of the recipient nations as well as a need for the role of mediating body such as DAC.