La relación entre la ayuda al desarrollo y la desigualdad. Evidencia y justificación teórica

Aid and inequality relationship. Evidence and theoretical justification

Jose Larru

MPRA Paper from University Library of Munich, Germany

Abstract: Whilst the aid-growth relationship has been deeply studied, the relation between aid and inequality has not. The paper finds a negative robust correlation between changes in inequality and foreign aid in a cross-section analysis for 77 countries and the period 1990-2000. This correlation is analyzed in a growth-poverty-inequality-institutional framework. The outliers are studied deeper instead of average results. In a second step, the aid-inequality relationship is theoretically justified over six dimensions: potential production, production factors, incentives structure, economic policy, public resources allocation and the autoregressive nature of aid and inequality. The final section considers positive and normative consequences of the aid-inequality relationship on the recipient (countries and people) selection of foreign aid.

Keywords: inequality; foreign aid; selection bias (search for similar items in EconPapers)
JEL-codes: D31 F35 (search for similar items in EconPapers)
Date: 2012-05-18
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:38857

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