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The effect of health aid policies on health and economic development in sub-Saharan Africa

Essosinam Franck KARABOU
Université de Kara, Togo
Faculté des Sciences Économiques et de Gestion, Département d’Économie
kfranck2008@gmail.com
ORCID: https://orcid.org/0000-0003-3808-381X

Komlan Ametowoyo ADEVE
Université de Kara, Togo
Faculté des Sciences Économiques et de Gestion, Département d’Économie
fadeve@yahoo.fr
ORCID: https://orcid.org/0000-0001-5296-685X

Kpatchaa SONGHAÏ
Université de Kara, Togo
Faculté des Sciences Économiques et de Gestion, Département d’Économie
songkpatcha@gmail.com
ORCID: https://orcid.org/0000-0002-6466-9710

Abstract: The objective of this paper is to analyze the effect of health aid policies on health and economic development in sub-Saharan Africa over the period 2002–2018. The methodology adopted is based on generalized method of moments (GMM) in a dynamic panel system. The results after estimations reveal that only aid granted to basic health and reproductive health improves the health status of populations. For a 1% increase of these aids, approximately 6 and 2 lives per 1000 live births can be saved respectively. The results also show that the health capital (infant and child mortality rate) has a negative effect on the level of GDP about 0.003%. It also shows that debt service has a negative impact on GDP about 0.003%. This research therefore recommends that health aid policies in sub-Saharan African countries should be oriented towards pro-poor spending such as basic health and

reproductive health, while at the same time reducing debt service to enable poor countries to invest in human capital such as health.

Keywords: health aid, health status, GDP, GMM, sub-Saharan Africa.

JEL classification : I18, F43, C23, O55.

DOI: https://doi.org/10.18559/RIELF.2021.2.7