Journal Article

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

Structural Change and Economic Dynamics, 23(3): 245-255

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.

Authors

Dierk Herzer
Peter Nunnenkamp

Info

Publication Date
JEL Classification
D31, F35, C23
DOI
10.1016/j.strueco.2012.04.002