Foreign Aid, Income Inequality, and Poverty

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dc.creator Calderón, María Cecilia
dc.creator Chong, Alberto E.
dc.creator Gradstein, Mark 2011-02-07T21:19:31Z 2011-02-07T21:19:31Z 2006-03-15 2006-03-15 2013-12-29T10:57:38Z 2014-09-09T00:54:29Z 2014-09-09T00:54:29Z 2014-09-08
dc.description The aim of this paper is to provide empirical evidence on the link between foreign aid and income inequality for the period 1973-2002. Since simple cross-country regressions cannot be taken as true time series findings, we also focus on dynamic panel data techniques, which allow accounting for potential simultaneity and heterogeneity problems. We do not find very robust evidence that foreign aid is conducive to the improvement of the distribution of income, even when the quality of institutions is taken into account. This finding is consistent with recent empirical research on aid and growth that shows that such a link is weak at best.
dc.format ACROBAT
dc.language en
dc.relation IDB Working Paper Series
dc.subject Poverty
dc.subject Pobreza
dc.subject WP-547
dc.title Foreign Aid, Income Inequality, and Poverty
dc.type Working Papers

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