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:	2012-03
Authors:	Herzer, Dierk ; Nunnenkamp, Peter
Institutions:	Institut für Weltwirtschaft (IfW)
Subject:	Inequality \| foreign aid \| panel data \| cointegration

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Extent:	application/pdf
Series:	Kiel Working Papers.
Type of publication:	Book / Working Paper
Notes:	31 pages
Classification:	D31 - Personal Income, Wealth and Their Distributions ; F35 - Foreign Aid ; C23 - Models with Panel Data
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010886909