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Income Inequality and Foreign Aid

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  • Thi Hong Hanh Pham

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes)

Abstract

The aid effectiveness has become a long-lasting and controversial debate in the literature. To complement the concerned literature, this paper aims to address the question of whether foreign aid plays a crucial role in widening or narrowing income inequality. To do so, we employ a large dataset covering twenty-seven countries in Sub-Saharan Africa over the period 1990-2011. We find evidence of an inequality increasing effect of foreign aid in Sub-Saharan Africa. However, this effect can reverse when the corruption is controlled.

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  • Thi Hong Hanh Pham, 2015. "Income Inequality and Foreign Aid," Working Papers hal-01158240, HAL.
    • Handle: RePEc:hal:wpaper:hal-01158240
    Note: View the original document on HAL open archive server: https://hal.science/hal-01158240
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    References listed on IDEAS

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    Cited by:

    1. John C. Anyanwu, 2016. "Empirical Analysis of the Main Drivers of Income Inequality in Southern Africa," Annals of Economics and Finance, Society for AEF, vol. 17(2), pages 337-364, November.

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