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Sectoral foreign aid and income inequality


Saidon, Ruhaida and Yusop, Zulkornain and Ismail, Normaz Wana and Law, Siong Hook (2013) Sectoral foreign aid and income inequality. In: 3rd International Conference on Business and Economic Research (3rd ICBER 2012) , 12-13 Mac 2012, Bandung, Indonesia. (pp. 1760-1771).


This study contributes to the empirics of foreign aid and income inequality by investigating the effect of foreign aid on income inequality in recipient countries based on the disaggregation of foreign aid figures. For this purpose we include the four main sectoral foreign aid (social sector, production sector and multi sector) as determinants of income inequality. This study utilizied the Generalized Method of Moments (GMM) method for a panel of 75 foreign aid recipient countries covering the period of 1995-2009. The results indicated that different sectoral foreign aid affected income inequality differently. Aid to economic sector has significant impact in reducing the income inequality. In contrast, aid to multi sector significantly increased income inequality.

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Additional Metadata

Item Type: Conference or Workshop Item (Paper)
Divisions: Faculty of Economics and Management
Publisher: Conference Master Resources
Keywords: Foreign aid; Income inequality; Generalized method of moments (GMM)
Depositing User: Erni Suraya Abdul Aziz
Date Deposited: 27 Mar 2015 09:20
Last Modified: 27 Mar 2015 09:20
URI: http://psasir.upm.edu.my/id/eprint/26806
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