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Sectoral foreign aid and income inequality


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

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Abstract

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, economic sector, production sector and multi sector) as determinants of income inequality. This study utilized 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.

Item Type: Conference or Workshop Item (Paper)
Additional Information: ISBN: 978-967-5705-05-2
Uncontrolled Keywords: Foreign aid; income inequality; panel data approach.
Subjects: H Social Sciences > HB Economic Theory
Divisions: School of Economics, Finance & Banking
Depositing User: Mdm. Ruhaida Saidon
Date Deposited: 21 Oct 2014 03:43
Last Modified: 21 Apr 2016 00:58
URI: http://repo.uum.edu.my/id/eprint/12255

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