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Karim Barkat, Zouhair Mrabet and Mouyad Alsamara
 
''Does Official Development Assistance for health from developed countries displace government health expenditure in Sub-Saharan countries?''
( 2016, Vol. 36 No.3 )
 
 
This paper empirically examines the foreign aid fungibility in the health sector of 45 Sub-Saharan countries over the period of 1995-2012. The aim of the study is to investigate the effect of foreign health aid on government health expenditure by using two methods: the Generalized Method of Moments (GMM) and the Fixed Effect Instrumental Variables (FE-IV). The estimation was conducted on the full sample and on two sub samples: middle- and low-income countries. We found strong evidence of partial fungibility in the health sector as follows: an increase of 1% in health aid leads to an increase of 0.04 to 0.1% of government health spending, noting that the magnitude of fungibility in middle-income countries is higher than in the low-income ones.
 
 
Keywords: Health, Public Health Expenditure, Foreign Aid, Fungibility
JEL:
H5 - National Government Expenditures and Related Policies National Government Expenditures and Related Policies: General
 
Manuscript Received : Dec 19 2015 Manuscript Accepted : Aug 24 2016

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