THE ROLE OF CHINESE DEVELOPMENT AID AND INCOME INEQUALITY: THE CASE OF EAST AFRICA

Geberemeskel Alula Nerea, Monir Maruf Mohammad Sirajum, Cristea Nicoleta-Elena and Makkawi Hasan
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Geberemeskel Alula Nerea: BUCHAREST UNIVERSITY OF ECONOMIC STUDIES, BUCHAREST, ROMANIA
Monir Maruf Mohammad Sirajum: HUAZHONG AGRICULTURAL UNIVERSITY, WUHAN, CHINA
Cristea Nicoleta-Elena: BUCHAREST UNIVERSITY OF ECONOMIC STUDIES, BUCHAREST, ROMANIA
Makkawi Hasan: BUCHAREST UNIVERSITY OF ECONOMIC STUDIES, BUCHAREST, ROMANIA

Annals - Economy Series, 2024, vol. 1, 5-14

Abstract: China's influence is significantly growing globally over the years. Especially in East Africa, over the last couple of decades, china’s role is significantly grown in multifaceted socio-economic activities such as Aid and investment. However, the relations, mainly the aid aspect which consists of a concessional loan with a grant element of 25 %, are portrayed by the West as detrimental, putting countries in a debt trap and adversely affecting socio-economic life in multiple ways in the long run. This paper aims to investigate the clime from Income Inequality (IIQ) point of view. By measuring the impact of Chinese official development assistance (ODA) on Income inequality (IIQ) in selected East African countries. The study employed random effect model on secondary data gathered for twenty years from eight countries. The results depict that Chines official development assistance contributes to reduction of income inequality.

Keywords: Development Aid; East Africa; Income Inequality, Random effect, China (search for similar items in EconPapers)
Date: 2024
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