The effect of foreign aid on income inequality: Evidence from panel cointegration

Dierk Herzer and Peter Nunnenkamp

Structural Change and Economic Dynamics, 2012, vol. 23, issue 3, 245-255

Abstract: This paper examines the long-run effect of foreign aid on income inequality for 21 recipient countries using panel cointegration techniques to control for omitted variable and endogeneity bias. We find that aid exerts an inequality increasing effect on income distribution.

Keywords: Inequality; Foreign aid; Panel data; Cointegration (search for similar items in EconPapers)
JEL-codes: C23 D31 F35 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (57)

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Working Paper: The effect of foreign aid on income inequality: Evidence from panel cointegration (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:23:y:2012:i:3:p:245-255

DOI: 10.1016/j.strueco.2012.04.002

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