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Seeds of light Inside the gloom: Assessing the effect of foreign aid on the reduction of child mortality

AuthorsSoto, Marcelo
Issue Date2011
CitationLatin American and Caribbean Economic Association (LACEA) and Latin American Meeting of the Econometric Society (LAMES): 2011 Parallel Meetings
AbstractThe Millennium Declaration (2000) set as one of its targets a substantial reduction in child mortality. This paper studies whether the massive increase in foreign aid can account for part of the reduction in child mortality observed in developing countries since year 2000. To do so we analyze a panel of more than 100 developing countries over the period 2000-2008. We use the time trend evolution of aid to identify an exogenous source of variation. We find that although the effect of total aid on child mortality is not statistically significant, some sectors of aid have indeed caused a significant reduction in child mortality. The effects have been larger in high mortality countries, including Sub-Saharan African countries. However, projections based on our estimates strongly support the concern that most countries in that region will miss the Millennium Goals target on child mortality.
Appears in Collections:(IAE) Comunicaciones congresos
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