The impact of SWAps on health aid displacement of domestic health expenditure

Rohan Sweeney, Marc Eckart Suhrcke, Yun Joo Jeon, Duncan Mortimer

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Recent research suggests that an additional $1 of health aid would displace – or crowd out – nearly the same amount in a recipient governments’ own health expenditure. Implementing a Sector Wide Approach (SWAp) may exacerbate crowding out because recipient governments should face fewer constraints when allocating health aid. This paper uses rigorous panel data methods to investigate this hypothesised effect of SWAp. We find that SWAp provides not an exacerbating but a potentially protective effect, reducing displacement of government health expenditure. This suggests some aid dollars are more fungible than others, and the mechanism for aid delivery makes a difference.
Original languageEnglish
Pages (from-to)719-737
Number of pages19
Issue number4
Early online date23 Mar 2017
Publication statusPublished - 2018

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© 2017 Informa UK Limited, trading as Taylor & Francis Group. This is an author-produced version of the published paper. Uploaded in accordance with the publisher’s self-archiving policy. Further copying may not be permitted; contact the publisher for details


  • government health expenditure
  • development assistance
  • aid additionality
  • aid fungibility
  • crowding out
  • displacement
  • sector wide approach
  • aid coordination

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