Income Inequality and Foreign Aid
Abstract
The aid effectiveness has become a long-lasting and controversial debate in the literature. To complement the concerned literature, this paper aims to address the question of whether foreign aid plays a crucial role in widening or narrowing income inequality. To do so, we employ a large dataset covering twenty-seven countries in Sub-Saharan Africa over the period 1990-2011. We find evidence of an inequality increasing effect of foreign aid in Sub-Saharan Africa. However, this effect can reverse when the corruption is controlled.
Origin : Files produced by the author(s)
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