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

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.

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Year of publication:	2012
Authors:	Herzer, Dierk ; Nunnenkamp, Peter
Publisher:	Kiel : Kiel Institute for the World Economy (IfW)
Subject:	Internationale Wirtschaftshilfe \| Entwicklungshilfe \| Wirkungsanalyse \| Einkommensverteilung \| Schätzung \| Entwicklungsländer \| inequality \| foreign aid \| panel data \| cointegration

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Series:	Kiel Working Paper ; 1762
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	688941591 [GVK] hdl:10419/56382 [Handle] RePEc:zbw:ifwkwp:1762 [RePEc]
Classification:	D31 - Personal Income, Wealth and Their Distributions ; F35 - Foreign Aid ; C23 - Models with Panel Data
Source:	EconStor

Persistent link: https://www.econbiz.de/10010281449