Kiel Working Papers, Kiel Institute for World Economics
No 1762:
The Effect of Foreign Aid on Income Inequality: Evidence from Panel Cointegration
Peter Nunnenkamp Dierk Herzer
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; (follow links to similar papers)
JEL-Codes: D31,; F35,; C23; (follow links to similar papers)
31 pages, March 2012
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