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

  • Herzer, Dierk
  • Nunnenkamp, Peter

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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File URL: http://www.sciencedirect.com/science/article/pii/S0954349X1200032X
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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
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/525148

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