Martin Ambassa , Itchoko Motande Mondjeli Mwa Ndjokou , Pierre Christian Tsopmo
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引用次数: 0
Abstract
Existing literature on the relationship between foreign aid and income inequality (inequality) is inconclusive and the role of conflict has been underexplored. Yet, the frequency and severity of conflicts in Sub-Saharan Africa (SSA) have increased sharply in recent years. This study investigates the impact of foreign aid on inequality in SSA, focusing on the moderating role of conflicts. Using a sample of 41 SSA countries from 1989 to 2022, we employ fixed-effects and System GMM to explore the complex interplay between foreign aid, conflicts and inequality. The results suggest that foreign aid reduces inequality, but that its effectiveness is considerably reduced in conflict-ridden countries. The results confirm the harmful effect of conflict in the foreign aid-inequality nexus in SSA. Results are robust to many robustness checks, such as the alternative strategy, which combines alternative inequality and conflict measures. Our results suggest that promoting good governance by fighting corruption and preventing conflict can enable foreign aid to significantly reduce inequality in SSA.
期刊介绍：
Established in 1947, Research in Economics is one of the oldest general-interest economics journals in the world and the main one among those based in Italy. The purpose of the journal is to select original theoretical and empirical articles that will have high impact on the debate in the social sciences; since 1947, it has published important research contributions on a wide range of topics. A summary of our editorial policy is this: the editors make a preliminary assessment of whether the results of a paper, if correct, are worth publishing. If so one of the associate editors reviews the paper: from the reviewer we expect to learn if the paper is understandable and coherent and - within reasonable bounds - the results are correct. We believe that long lags in publication and multiple demands for revision simply slow scientific progress. Our goal is to provide you a definitive answer within one month of submission. We give the editors one week to judge the overall contribution and if acceptable send your paper to an associate editor. We expect the associate editor to provide a more detailed evaluation within three weeks so that the editors can make a final decision before the month expires. In the (rare) case of a revision we allow four months and in the case of conditional acceptance we allow two months to submit the final version. In both cases we expect a cover letter explaining how you met the requirements. For conditional acceptance the editors will verify that the requirements were met. In the case of revision the original associate editor will do so. If the revision cannot be at least conditionally accepted it is rejected: there is no second revision.
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