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The Effect of Foreign Aid on Income Inequality: Evidence from Panel Cointegration

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  • Dierk Herzer, Peter Nunnenkamp

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

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1762.

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Length: 31 pages
Date of creation: Mar 2012
Date of revision:
Handle: RePEc:kie:kieliw:1762

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Keywords: Inequality; foreign aid; panel data; cointegration;

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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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