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The effect of foreign aid on income inequality: Evidence from panel cointegration

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  • Herzer, Dierk
  • Nunnenkamp, Peter

Abstract

This paper examines the long-run effect of foreign aid on income inequality for 21 recipient countries using panel cointegration techniques to control for omitted variable and endogeneity bias. We find that aid exerts an inequality increasing effect on income distribution.

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Bibliographic Info

Article provided by Elsevier in its journal Structural Change and Economic Dynamics.

Volume (Year): 23 (2012)
Issue (Month): 3 ()
Pages: 245-255

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Handle: RePEc:eee:streco:v:23:y:2012:i:3:p:245-255

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Web page: http://www.elsevier.com/locate/inca/525148

Related research

Keywords: Inequality; Foreign aid; Panel data; Cointegration;

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References

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Cited by:
  1. Joaquin Morales Belpaire, 2012. "Decentralized Aid and Democracy," Working Papers 1212, University of Namur, Department of Economics.

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