Fungibility and the Impact of Development Assistance : Evidence from Vietnam's Health Sector
How can the impact of aid be estimated in the presence of fungibility? And how far does fungibility reduce its benefits? These questions are analyzed in a context where a donor wants to target its efforts on a specific sector and specific geographi...
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| Format: | Policy Research Working Paper |
| Language: | English |
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Washington, DC: World Bank
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/12/10309754/fungibility-impact-development-assistance-evidence-vietnams-health-sector http://hdl.handle.net/10986/6328 |
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okr-10986-63282021-04-23T14:02:30Z Fungibility and the Impact of Development Assistance : Evidence from Vietnam's Health Sector Wagstaff, Adam ACCOUNTING ACCURATE ESTIMATE AGED ALLOCATION AMOUNT OF MONEY BASELINE SCENARIO BENEFICIARIES BENEFICIARY BREAST CANCER BUDGET CONSTRAINT CALCULATION CENTRAL GOVERNMENT CHILD CARE CHILD HEALTH CHILD MORTALITY CHILD SURVIVAL CLINICS COMMUNES CONTRACEPTIVE SUPPLIES CREDITS DATA ANALYSIS DEVELOPMENT ASSISTANCE DEVELOPMENT BANK DISTRICTS DONOR ASSISTANCE DONOR FUNDS ECONOMIC GROWTH ESSENTIAL DRUGS EXPENDITURE ALLOCATIONS EXPENDITURE DATA EXPENDITURES FAMILY HEALTH FAMILY PLANNING FISCAL CAPACITY FISCAL DECENTRALIZATION FISCAL TRANSFERS FUNGIBILITY FUNGIBILITY OF AID GOVERNMENT EXPENDITURE GOVERNMENT EXPENDITURES GOVERNMENT REVENUES GOVERNMENT SPENDING HEALTH CENTERS HEALTH EXPENDITURE HEALTH EXPENDITURES HEALTH FACILITIES HEALTH FINANCING HEALTH INDICATORS HEALTH INSURANCE HEALTH MINISTRY HEALTH OUTCOMES HEALTH PLANNING HEALTH PROBLEMS HEALTH SECTOR HEALTH SECTOR REFORM HEALTH SPENDING HOSPITALS HOUSEHOLDS HOUSING HOUSING CENSUS HUMAN DEVELOPMENT INCOME INFANT INFANT DEATH INFANT DEATHS INFANT MORTALITY INFANT MORTALITY RATE INSTITUTIONAL CAPACITY INSURANCE SCHEME INTERVENTIONS LIVE BIRTHS LOAN MALARIA MARRIED WOMEN MONEY MATTER MORTALITY MOTHER NATIONAL GOVERNMENT NATIONAL PRIORITY NEWBORNS NUMBER OF CHILDREN OUTCOME INDICATOR PATIENTS PERFORMANCE ASSESSMENT POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLLUTION POPULATION DENSITY POVERTY REDUCTION PRIMARY HEALTH CARE PRODUCTIVITY PROGRAMS PROGRESS PROVINCIAL EXPENDITURE PROVINCIAL GOVERNMENT PROVINCIAL LEVEL PROVINCIAL REVENUES PUBLIC ECONOMICS PUBLIC EXPENDITURE PUBLIC EXPENDITURE REVIEW PUBLIC RESOURCES PUBLIC SERVICES PUBLIC SPENDING PURCHASES REPRODUCTIVE HEALTH RESPECT RISK OF DEATH RURAL AREAS SANITATION SAVINGS SERVICE DELIVERY SOCIAL HEALTH INSURANCE SOCIAL SCIENCE SOCIAL WELFARE SPENDING INCREASE SPILLOVER SPILLOVER EFFECTS TOTAL EXPENDITURES TOTAL SPENDING TRAINING PROGRAMS URBAN AREAS USER FEES WELFARE FUNCTION WORTH How can the impact of aid be estimated in the presence of fungibility? And how far does fungibility reduce its benefits? These questions are analyzed in a context where a donor wants to target its efforts on a specific sector and specific geographic areas. A traditional differences-in-differences method comparing the change in outcomes between the target and nontarget areas before and after the project risks misestimating the project's benefits. The paper develops an alternative estimation method in which intersectoral fungibility reduces project benefits insofar as government spending has a smaller impact in the sector to which the funds leak than in the target sector, while intrasectoral fungibility reduces benefits insofar as the donor is able to leverage productivity increases in government spending in the target areas. The methods are applied to two contemporaneous World Bank health projects that set out to target assistance on approximately one-half of Vietnam's provinces. Aid is not apparently fungible between Vietnam's health sector and other sectors, but is fungible across provinces within the health sector. Differences-in-differences yield an insignificant impact on infant mortality, while the use of the new method yields a statistically significant impact of around 4 per 1000 live births. The results, however, are ambiguous on the costs associated with intrasectoral fungibility. 2012-05-22T21:32:06Z 2012-05-22T21:32:06Z 2008-12 http://documents.worldbank.org/curated/en/2008/12/10309754/fungibility-impact-development-assistance-evidence-vietnams-health-sector http://hdl.handle.net/10986/6328 English Policy Research Working Paper; No. 4800 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC: World Bank Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific Vietnam |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING ACCURATE ESTIMATE AGED ALLOCATION AMOUNT OF MONEY BASELINE SCENARIO BENEFICIARIES BENEFICIARY BREAST CANCER BUDGET CONSTRAINT CALCULATION CENTRAL GOVERNMENT CHILD CARE CHILD HEALTH CHILD MORTALITY CHILD SURVIVAL CLINICS COMMUNES CONTRACEPTIVE SUPPLIES CREDITS DATA ANALYSIS DEVELOPMENT ASSISTANCE DEVELOPMENT BANK DISTRICTS DONOR ASSISTANCE DONOR FUNDS ECONOMIC GROWTH ESSENTIAL DRUGS EXPENDITURE ALLOCATIONS EXPENDITURE DATA EXPENDITURES FAMILY HEALTH FAMILY PLANNING FISCAL CAPACITY FISCAL DECENTRALIZATION FISCAL TRANSFERS FUNGIBILITY FUNGIBILITY OF AID GOVERNMENT EXPENDITURE GOVERNMENT EXPENDITURES GOVERNMENT REVENUES GOVERNMENT SPENDING HEALTH CENTERS HEALTH EXPENDITURE HEALTH EXPENDITURES HEALTH FACILITIES HEALTH FINANCING HEALTH INDICATORS HEALTH INSURANCE HEALTH MINISTRY HEALTH OUTCOMES HEALTH PLANNING HEALTH PROBLEMS HEALTH SECTOR HEALTH SECTOR REFORM HEALTH SPENDING HOSPITALS HOUSEHOLDS HOUSING HOUSING CENSUS HUMAN DEVELOPMENT INCOME INFANT INFANT DEATH INFANT DEATHS INFANT MORTALITY INFANT MORTALITY RATE INSTITUTIONAL CAPACITY INSURANCE SCHEME INTERVENTIONS LIVE BIRTHS LOAN MALARIA MARRIED WOMEN MONEY MATTER MORTALITY MOTHER NATIONAL GOVERNMENT NATIONAL PRIORITY NEWBORNS NUMBER OF CHILDREN OUTCOME INDICATOR PATIENTS PERFORMANCE ASSESSMENT POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLLUTION POPULATION DENSITY POVERTY REDUCTION PRIMARY HEALTH CARE PRODUCTIVITY PROGRAMS PROGRESS PROVINCIAL EXPENDITURE PROVINCIAL GOVERNMENT PROVINCIAL LEVEL PROVINCIAL REVENUES PUBLIC ECONOMICS PUBLIC EXPENDITURE PUBLIC EXPENDITURE REVIEW PUBLIC RESOURCES PUBLIC SERVICES PUBLIC SPENDING PURCHASES REPRODUCTIVE HEALTH RESPECT RISK OF DEATH RURAL AREAS SANITATION SAVINGS SERVICE DELIVERY SOCIAL HEALTH INSURANCE SOCIAL SCIENCE SOCIAL WELFARE SPENDING INCREASE SPILLOVER SPILLOVER EFFECTS TOTAL EXPENDITURES TOTAL SPENDING TRAINING PROGRAMS URBAN AREAS USER FEES WELFARE FUNCTION WORTH |
| spellingShingle |
ACCOUNTING ACCURATE ESTIMATE AGED ALLOCATION AMOUNT OF MONEY BASELINE SCENARIO BENEFICIARIES BENEFICIARY BREAST CANCER BUDGET CONSTRAINT CALCULATION CENTRAL GOVERNMENT CHILD CARE CHILD HEALTH CHILD MORTALITY CHILD SURVIVAL CLINICS COMMUNES CONTRACEPTIVE SUPPLIES CREDITS DATA ANALYSIS DEVELOPMENT ASSISTANCE DEVELOPMENT BANK DISTRICTS DONOR ASSISTANCE DONOR FUNDS ECONOMIC GROWTH ESSENTIAL DRUGS EXPENDITURE ALLOCATIONS EXPENDITURE DATA EXPENDITURES FAMILY HEALTH FAMILY PLANNING FISCAL CAPACITY FISCAL DECENTRALIZATION FISCAL TRANSFERS FUNGIBILITY FUNGIBILITY OF AID GOVERNMENT EXPENDITURE GOVERNMENT EXPENDITURES GOVERNMENT REVENUES GOVERNMENT SPENDING HEALTH CENTERS HEALTH EXPENDITURE HEALTH EXPENDITURES HEALTH FACILITIES HEALTH FINANCING HEALTH INDICATORS HEALTH INSURANCE HEALTH MINISTRY HEALTH OUTCOMES HEALTH PLANNING HEALTH PROBLEMS HEALTH SECTOR HEALTH SECTOR REFORM HEALTH SPENDING HOSPITALS HOUSEHOLDS HOUSING HOUSING CENSUS HUMAN DEVELOPMENT INCOME INFANT INFANT DEATH INFANT DEATHS INFANT MORTALITY INFANT MORTALITY RATE INSTITUTIONAL CAPACITY INSURANCE SCHEME INTERVENTIONS LIVE BIRTHS LOAN MALARIA MARRIED WOMEN MONEY MATTER MORTALITY MOTHER NATIONAL GOVERNMENT NATIONAL PRIORITY NEWBORNS NUMBER OF CHILDREN OUTCOME INDICATOR PATIENTS PERFORMANCE ASSESSMENT POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLLUTION POPULATION DENSITY POVERTY REDUCTION PRIMARY HEALTH CARE PRODUCTIVITY PROGRAMS PROGRESS PROVINCIAL EXPENDITURE PROVINCIAL GOVERNMENT PROVINCIAL LEVEL PROVINCIAL REVENUES PUBLIC ECONOMICS PUBLIC EXPENDITURE PUBLIC EXPENDITURE REVIEW PUBLIC RESOURCES PUBLIC SERVICES PUBLIC SPENDING PURCHASES REPRODUCTIVE HEALTH RESPECT RISK OF DEATH RURAL AREAS SANITATION SAVINGS SERVICE DELIVERY SOCIAL HEALTH INSURANCE SOCIAL SCIENCE SOCIAL WELFARE SPENDING INCREASE SPILLOVER SPILLOVER EFFECTS TOTAL EXPENDITURES TOTAL SPENDING TRAINING PROGRAMS URBAN AREAS USER FEES WELFARE FUNCTION WORTH Wagstaff, Adam Fungibility and the Impact of Development Assistance : Evidence from Vietnam's Health Sector |
| geographic_facet |
East Asia and Pacific Vietnam |
| relation |
Policy Research Working Paper; No. 4800 |
| description |
How can the impact of aid be estimated
in the presence of fungibility? And how far does fungibility
reduce its benefits? These questions are analyzed in a
context where a donor wants to target its efforts on a
specific sector and specific geographic areas. A traditional
differences-in-differences method comparing the change in
outcomes between the target and nontarget areas before and
after the project risks misestimating the project's
benefits. The paper develops an alternative estimation
method in which intersectoral fungibility reduces project
benefits insofar as government spending has a smaller impact
in the sector to which the funds leak than in the target
sector, while intrasectoral fungibility reduces benefits
insofar as the donor is able to leverage productivity
increases in government spending in the target areas. The
methods are applied to two contemporaneous World Bank health
projects that set out to target assistance on approximately
one-half of Vietnam's provinces. Aid is not apparently
fungible between Vietnam's health sector and other
sectors, but is fungible across provinces within the health
sector. Differences-in-differences yield an insignificant
impact on infant mortality, while the use of the new method
yields a statistically significant impact of around 4 per
1000 live births. The results, however, are ambiguous on the
costs associated with intrasectoral fungibility. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Wagstaff, Adam |
| author_facet |
Wagstaff, Adam |
| author_sort |
Wagstaff, Adam |
| title |
Fungibility and the Impact of Development Assistance : Evidence from Vietnam's Health Sector |
| title_short |
Fungibility and the Impact of Development Assistance : Evidence from Vietnam's Health Sector |
| title_full |
Fungibility and the Impact of Development Assistance : Evidence from Vietnam's Health Sector |
| title_fullStr |
Fungibility and the Impact of Development Assistance : Evidence from Vietnam's Health Sector |
| title_full_unstemmed |
Fungibility and the Impact of Development Assistance : Evidence from Vietnam's Health Sector |
| title_sort |
fungibility and the impact of development assistance : evidence from vietnam's health sector |
| publisher |
Washington, DC: World Bank |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/12/10309754/fungibility-impact-development-assistance-evidence-vietnams-health-sector http://hdl.handle.net/10986/6328 |
| _version_ |
1764399878644957184 |