Review of World Economics

, Volume 143, Issue 4, pp 673–693

Child Mortality: Is Aid Fungibility in Pro-Poor Expenditure Sectors Decisive?


DOI: 10.1007/s10290-007-0127-7

Cite this article as:
Pettersson, J. Rev World Econ (2007) 143: 673. doi:10.1007/s10290-007-0127-7


If development assistance targeted at specific sectors is not used as intended, aid is said to be fungible. Using country-specific estimates of the degree of aid fungibility in “pro-poor” government expenditure sectors, I assess the effect on child mortality. Results indicate that fungibility within these sectors does not help to explain differences in mortality. However, when separating the sample into democracies and non-democracies, results suggest that pro-poor expenditures influence mortality in non-democracies only and that aid treated as fungible tends to be used efficiently in democracies.


Foreign aidfungibilitypovertypublic expenditure

Copyright information

© Kiel Institute 2007

Authors and Affiliations

  1. 1.Department of EconomicsStockholm UniversityStockholmSweden