International aid, one of the most powerful weapons in the fight against poverty, has been underutilized and weakly linked to improving human development in countries that require assistance. This study aims to investigate the impact of foreign aid on overall health in developing countries using five health outcomes that include immunization measles and DPT, infant mortality rate, crude death rate, and life expectancy. The Ordinary Least Squares (OLS) regression analysis is used to test the impact of aid on health outcomes in developing countries both with and without the presence of corruption. Without accounting for corruption, the regression estimates indicate that foreign aid has the opposite expected impact on health outcomes, however, after accounting for corruption, the impact of foreign aid on health outcomes is in the hypothesized direction. The results suggest that an increase in aid in the presence of corruption leads to a significant increase in death rates.
Verghese, Jessica, "Foreign Aid in the Face of Corruption: An Estimation of the Impact on Health Indicators and Poverty in Developing Countries" (2018). Senior Independent Study Theses. Paper 8293.
Growth and Development | Health Economics | International Economics
Bachelor of Arts
Senior Independent Study Thesis
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