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The Fungibility of Health Aid Reconsidered

Nicolas Van de Sijpe ()

Journal of Development Studies, 2013, vol. 49, issue 12, 1746-1754

Abstract: This article draws further attention to the importance of taking into account off-budget aid when estimating the degree of foreign aid fungibility. It does so by re-evaluating the results of a recent, influential paper which concluded that health aid is fully fungible in the long run. Allowing for the presence of off-budget aid indicates that the degree of fungibility of health aid is much more uncertain than at first blush appears. Under plausible assumptions about the role of off-budget aid, the conclusion of full fungibility is overturned and at most only a limited degree of fungibility is found.

Date: 2013
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DOI: 10.1080/00220388.2013.819424

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