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Do Foreign Aid and Globalization Affect Health in Developing Countries?

Welander, Anna LU (2012) NEKP01 20121
Department of Economics
Abstract
Health plays a crucial role for human development. Therefore, foreign aid is often directed to combat ill-health in the developing world. At the same time, globalization is a strong force that may aect health through various channels. But the two factors may also be interrelated. In this paper, I analyze the relationship between foreign aid, globalization, and health by estimating a xed eects panel data model over 93 aid recipient countries between 1970 and 2009. As an important extension to previous studies, I include an interaction term of the two variables that turns out to be highly signicant. In addition, I investigate what the relationship looks like for three dierent dimensions of globalization (economic, social, and political). The... (More)
Health plays a crucial role for human development. Therefore, foreign aid is often directed to combat ill-health in the developing world. At the same time, globalization is a strong force that may aect health through various channels. But the two factors may also be interrelated. In this paper, I analyze the relationship between foreign aid, globalization, and health by estimating a xed eects panel data model over 93 aid recipient countries between 1970 and 2009. As an important extension to previous studies, I include an interaction term of the two variables that turns out to be highly signicant. In addition, I investigate what the relationship looks like for three dierent dimensions of globalization (economic, social, and political). The correlation between aid and health is negative at high
levels of overall globalization. Overall globalization is positive for health at low levels of aid. The relationship is similar when looking at economic and social globalization. For the social dimension, though, lower levels of globalization generates a positive correlation between aid
and health and high levels of aid leads to a negative relationship between social globalization and health. Political globalization is positively related to health at all levels of aid, but the interaction eect is insignicant. A battery of sensitivity analyses suggests that the results
are fairly stable toward specication and sample alterations. (Less)
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author
Welander, Anna LU
supervisor
organization
course
NEKP01 20121
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Foreign Aid, Globalization, Health, Developing Countries
language
English
id
3052236
date added to LUP
2012-09-27 11:40:37
date last changed
2012-09-27 11:40:37
@misc{3052236,
  abstract     = {Health plays a crucial role for human development. Therefore, foreign aid is often directed to combat ill-health in the developing world. At the same time, globalization is a strong force that may aect health through various channels. But the two factors may also be interrelated. In this paper, I analyze the relationship between foreign aid, globalization, and health by estimating a xed eects panel data model over 93 aid recipient countries between 1970 and 2009. As an important extension to previous studies, I include an interaction term of the two variables that turns out to be highly signicant. In addition, I investigate what the relationship looks like for three dierent dimensions of globalization (economic, social, and political). The correlation between aid and health is negative at high
levels of overall globalization. Overall globalization is positive for health at low levels of aid. The relationship is similar when looking at economic and social globalization. For the social dimension, though, lower levels of globalization generates a positive correlation between aid
and health and high levels of aid leads to a negative relationship between social globalization and health. Political globalization is positively related to health at all levels of aid, but the interaction eect is insignicant. A battery of sensitivity analyses suggests that the results
are fairly stable toward specication and sample alterations.},
  author       = {Welander, Anna},
  keyword      = {Foreign Aid,Globalization,Health,Developing Countries},
  language     = {eng},
  note         = {Student Paper},
  title        = {Do Foreign Aid and Globalization Affect Health in Developing Countries?},
  year         = {2012},
}