Aid effectiveness in Bangladesh: case study of health and population sector

Mohammad Kabir, Jahangirnagar University
Tofayel Ahmed, Bangladesh Population Association

This paper addresses volume of foreign aid and its effectiveness on the overall health status of the population. The data used for the study is the time series data for the period 1980-2004. Since 1990 project aid increased substantially and this might have contributed to the overall health status of the population which is measured by the life expectancy of the population. Stationery condition is a requirement to interpret the time series for longer time period. . The Unit Root test and Augmented Dickey-Fuller test were conducted in the analysis. Among the independent variables aid utilization is highly significant demonstrating that life expectancy is influenced by these variables. The adjusted R2 implies that independent variables considered in the model are all appropriate to explain the overall health status of the population. Despite limitation of the study, the foreign aid in Bangladesh is a correlate of the health status of the population in Bangladesh.