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

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.