Quantile regression analysis of health-aid and infant mortality: a note

Abstract

Empirical literature examining the effectiveness of foreignaid on infant mortality, using mean regressions, has not found robust evidence in favour of foreignaid. The present article uses quantile regression technique to perform detailed scrutiny of the effect of multilateral health-aid on various quantiles of infant mortality rates in developing economies. We find that at relatively lower quantiles of infant mortality, health-aid is effective but it loses its effectiveness at relatively higher quantiles (i.e. for countries faced with more infant mortalities). This implies that more effective policy measures need to be undertaken for countries swamped with infant mortalities.

Keywords:

• quantile regression
• health-aid
• infant mortality rates
• foreign aid

JEL Classification:

• 112; C31
• F35
• O10