Income Inequality and Foreign Aid

Thi Hong Hanh Pham ()
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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

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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.

Keywords: foreign aid; income inequality; Sub-Saharan Africa (search for similar items in EconPapers)
Date: 2015-05-30
Note: View the original document on HAL open archive server: https://hal.science/hal-01158240
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Citations: View citations in EconPapers (1)

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