The effects of international aid and remittances on health: short-term evidence from the Republic of Moldova

Abstract

This paper investigates the effects of socioeconomic development as well as external financial sources such as official development aid and remittances on health indicators in Moldova. Time series annual data from 1997 to 2019 was used mainly from the World Bank data bank. First, it was found that higher values of GDP per capita and development aid lead to higher life expectancy at birth and lower infant mortality rates. Remittances however do not have a positive effect on life expectancy. As a matter of fact, relying on a theoretical background and research framework hypotheses, the results confirm the negative macroeconomic implications of remittances on inflation. Considering the short length of the analysed period, the results obtained while analysing infant mortality are more dynamic and better adapt to the analysed period.