IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-02276800.html

Volatility widens inequality. Could aid and remittances help?

Author

Listed:
  • Lisa Chauvet

    (DIAL - Développement, institutions et analyses de long terme, LEDa - Laboratoire d'Economie de Dauphine - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres)

  • Marin Ferry

    (LEDa - Laboratoire d'Economie de Dauphine - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres, DIAL - Développement, institutions et analyses de long terme, Institut de Recherche pour le Développement (IRD))

  • Patrick Guillaumont

    (FERDI - Fondation pour les Etudes et Recherches sur le Développement International)

  • Sylviane Guillaumont Jeanneney

    (FERDI - Fondation pour les Etudes et Recherches sur le Développement International)

  • Sampawende J.-A. Tapsoba

    (IMF - "Research Department International Monetary Fund (IMF)" - International Monetary Fund (IMF))

  • Laurent Wagner

    (FERDI - Fondation pour les Etudes et Recherches sur le Développement International)

Abstract

We analyse the relationship between income volatility and inequality and the conditional role played by aid and remittances. Using a panel of 142 countries for the period 1973–2012, we confirm a well-established finding among the literature that income volatility has an adverse impact on inequality, and that the poorest people are the most exposed to these fluctuations. However, while aid and remittances do not seem to have a clear direct impact on inequality, we uncover robust evidence that suggests that aid helps dampen the negative effects of volatility on the distribution of income, while remittances do not.

Suggested Citation

  • Lisa Chauvet & Marin Ferry & Patrick Guillaumont & Sylviane Guillaumont Jeanneney & Sampawende J.-A. Tapsoba & Laurent Wagner, 2019. "Volatility widens inequality. Could aid and remittances help?," Post-Print hal-02276800, HAL.
    • Handle: RePEc:hal:journl:hal-02276800
    DOI: 10.1007/s10290-018-0331-7
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Biljana Tashevska & Daniela Bojadjieva & Gunter Merdzan, 2023. "The Effects Of Remittances On Poverty And Inequality Alleviation In Selected Central And South-East European Countries," Shaping Post-COVID World – Challenges for Economic Theory and Policy, in: Aleksandra Praščević & Miomir Jakšić & Mihail Arandarenko & Dejan Trifunović & Milutin Ješić (ed.),Shaping Post-COVID World – Challenges for Economic Theory and Policy, chapter 9, pages 183-207, Faculty of Economics and Business, University of Belgrade.
    2. Chang, Shinhye & Gupta, Rangan & Miller, Stephen M. & Wohar, Mark E., 2019. "Growth volatility and inequality in the U.S.: A wavelet analysis," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 521(C), pages 48-73.
    3. Tékam Oumbé, Honoré & Djeunankan, Ronald & Kos A Mougnol, Alice, 2024. "Analysing the effect of foreign aid on industrialization: Evidence from Africa," International Economics, Elsevier, vol. 178(C).
    4. Robert Stojanov & Daniel Němec & Libor Žídek, 2019. "Evaluation of the Long-Term Stability and Impact of Remittances and Development Aid on Sustainable Economic Growth in Developing Countries," Sustainability, MDPI, vol. 11(6), pages 1-18, March.
    5. Islamaj, Ergys & Kose, M. Ayhan, 2022. "What types of capital flows help improve international risk sharing?," Journal of International Money and Finance, Elsevier, vol. 122(C).
    6. Sevde Arpaci‐Ayhan, 2023. "Foreign aid as a catalyst for improving productive capabilities in recipients," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(5), pages 738-760, July.
    7. Amar Anwar & Colin F. Mang & Sonia Plaza, 2024. "Remittances and inequality: A meta‐analytic investigation," The World Economy, Wiley Blackwell, vol. 47(6), pages 2664-2705, June.
    8. repec:beo:swcetp:23-09 is not listed on IDEAS
    9. Yasmeen, Rizwana & Shah, Wasi Ul Hassan, 2025. "Impact of business cycles on energy poverty: Exploring the significance with sustainable development goals in newly industrialized economies," Applied Energy, Elsevier, vol. 378(PA).
    10. Brice Kamguia & Ronald Djeunankan & Sosson Tadadjeu & Henri Njangang, 2024. "Does macroeconomic instability hamper access to electricity? Evidence from developing countries," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 32(2), pages 387-414, April.
    11. Avom, Désiré & Kamguia, Brice & Ngameni, Joseph Pasky & Njangang, Henri, 2021. "How does terms of trade volatility affect macroeconomic volatility? The roles of financial development and institutions," International Economics, Elsevier, vol. 168(C), pages 98-114.
    12. Désiré Avom & Brice Kamguia & Joseph Pasky Ngameni, 2021. "Does volatility hinder economic complexity?," Economics Bulletin, AccessEcon, vol. 41(3), pages 1187-1202.
    13. Itchoko Motande Mondjeli Mwa Ndjokou & Murielle Fokou Pepoung Dzeukoh, 2025. "Which route to elite turnover leads to women's political empowerment in developing countries?," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 33(2), pages 369-411, April.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-02276800. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.