Contents

Foreign Aid and Income Inequality

Kim, Sewon

DC Field Value Language
dc.contributor.authorKim, Sewon-
dc.date.accessioned2022-06-05T11:39:16Z-
dc.date.available2022-06-05T11:39:16Z-
dc.date.issued2022-03-
dc.identifier.urihttps://archives.kdischool.ac.kr/handle/11125/43193-
dc.description.abstractThis study contributes to the empirical understanding of aid effectiveness by examining the impact of foreign aid on income inequality in recipient countries. Impact of foreign aid on income inequality has been little studied despite the importance of the topic in terms of aid effectiveness, while among the existing literature, there is no consensus. This study utilizes both Pooled OLS and the Generalized Method of Moments (GMM) estimators for a panel of 156 countries covering the period 1997-2018. Data on inequality is extracted from the United Nation's World Income Inequality Database (WIID). The results indicate that foreign aid, controlling for other variables, is negatively correlated with income inequality at a statistically significant level, and the results are robust. Institutional variables, the level of democracy and control of corruption, are also incorporated to discern the relationship between foreign aid and governance. The results show that institutional variables have positive correlation with income inequality in an aid-receiving country. This implies that foreign aid may offset the equalizing effect of good governance, although overall, the equalizing effect of foreign aid on income inequality remains.-
dc.format.extent24-
dc.languageengen_US
dc.publisherKDI School of Public Policy and Management-
dc.relation.isPartOfSeriesDevelopment Studies Series DP 22-05-
dc.subjectForeign Aid-
dc.subjectIncome Inequality-
dc.subjectAid Effectiveness-
dc.subjectInternational Development-
dc.subjectGovernance-
dc.subjectPanel Data-
dc.subjectGeneralized Method of Moments (GMM)-
dc.subjectWorld Income Inequality Database (WIID)-
dc.titleForeign Aid and Income Inequalityen_US
dc.typeWorking Paper-
dc.identifier.doihttp://dx.doi.org/10.2139/ssrn.4070325-
dc.type.docTypeDevelopment Studies Series-
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