Can Foreign Aid Reduce Income Inequality and Poverty?
This paper's goal is to examine the effect of foreign aid on income inequality and poverty reduction for the period 1971-2002. Since simple cross-country regressions cannot be taken as 'true' time series findings we focus on dynamic panel data techniques, which allow accounting for po...
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| Veröffentlicht in: | Public choice 2009-07, Vol.140 (1/2), p.59-84 |
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| creator | Chong, Alberto Gradstein, Mark Calderon, Cecilia |
| description | This paper's goal is to examine the effect of foreign aid on income inequality and poverty reduction for the period 1971-2002. Since simple cross-country regressions cannot be taken as 'true' time series findings we focus on dynamic panel data techniques, which allow accounting for potential simultaneity and heterogeneity problems. We find some weak evidence that foreign aid is conducive to the improvement of the distribution of income when the quality of institutions is taken into account; however, this result is not robust. This finding is consistent with recent empirical research on aid ineffectiveness in achieving economic growth or promoting democratic institutions. |
| doi_str_mv | 10.1007/s11127-009-9412-4 |
| format | Article |
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| source | Worldwide Political Science Abstracts; Business Source Complete; JSTOR Archive Collection A-Z Listing; Political Science Complete; SpringerLink Journals - AutoHoldings |
| subjects | Causality Correlation analysis Corruption Econometrics Economic growth Economic theory Economics Economics and Finance Foreign Aid Gini coefficient Governance Gross domestic product Heterogeneity Income Income Distribution Income Inequality Inequality P values Panel data Political economy Political Science Poverty Poverty gap Proxy reporting Proxy statements Public Finance Socioeconomics Studies World Bank |
| title | Can Foreign Aid Reduce Income Inequality and Poverty? |
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