La relación entre la ayuda al desarrollo y la desigualdad. Evidencia y justificación teórica.

JOSÉ MARÍA, LARRÚ (2012): La relación entre la ayuda al desarrollo y la desigualdad. Evidencia y justificación teórica.

Abstract

Whilst the aid-growth relationship has been deeply studied, the relation between aid and inequality has not. The paper finds a negative robust correlation between changes in inequality and foreign aid in a cross-section analysis for 77 countries and the period 1990-2000. This correlation is analyzed in a growth-poverty-inequality-institutional framework. The outliers are studied deeper instead of average results. In a second step, the aid-inequality relationship is theoretically justified over six dimensions: potential production, production factors, incentives structure, economic policy, public resources allocation and the autoregressive nature of aid and inequality. The final section considers positive and normative consequences of the aid-inequality relationship on the recipient (countries and people) selection of foreign aid.

• Item Type: MPRA Paper
• English Title: Aid and inequality relationship. Evidence and theoretical justification.
• Language: Spanish
• Keywords: inequality; foreign aid; selection bias
• Subjects: D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions; F - International Economics > F3 - International Finance > F35 - Foreign Aid

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