Leading by example: do the biggest and most generous donors influence others to give more health aid?

Beech, Amy, Kwak, Do Won and Tang, Kam Ki (2015) Leading by example: do the biggest and most generous donors influence others to give more health aid?. International Journal of Social Economics, 42 1: 19-32. doi:10.1108/IJSE-08-2013-0181


Author Beech, Amy
Kwak, Do Won
Tang, Kam Ki
Title Leading by example: do the biggest and most generous donors influence others to give more health aid?
Journal name International Journal of Social Economics   Check publisher's open access policy
ISSN 0306-8293
1758-6712
Publication date 2015-01-01
Sub-type Article (original research)
DOI 10.1108/IJSE-08-2013-0181
Open Access Status
Volume 42
Issue 1
Start page 19
End page 32
Total pages 14
Place of publication Bingley, United Kingdom
Publisher Emerald Group Publishing
Collection year 2016
Language eng
Formatted abstract
Purpose: The purpose of this paper is to explore the interdependence between donor countries’ health aid expenditures. The specific form of interdependence considered is the leader effect, whereby an influential country has a positive leverage effect on other donor countries’ aid expenditure. The opposite case of a free-rider effect, whereby a single donor country has a negative leverage effect on its peers, is also considered.

Design/methodology/approach: Focusing on the identification of the leader effect avoids the estimation bias present in the identification of the peer group effect, due to endogenous social effect. The empirical analysis focuses on Development Assistance for Health provided by 20 OECD countries over the period of 1990-2009. Aid commitment and aid disbursement are distinguished.

Findings: When aid dynamics, country heterogeneity, and endogeneity are accounted for, there is no evidence that the biggest donor – the USA, or the most generous donors – Norway and Sweden, exhibit any leverage effects on other donor countries’ aid expenditures.

Originality/value: This is the first paper to examine the leader and free-rider effects in health aid provision as previous studies focus on peer effects. Any evidence of leader or free-rider effects (or the lack of it) adds to the understanding of international political economy especially in the area of foreign aid provision
Keyword Development
Health policy
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2016 Collection
School of Economics Publications
 
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Created: Mon, 12 Jan 2015, 08:58:59 EST by Alys Hohnen on behalf of School of Economics