The Impact of Foreign Aid on Income Inequality: Evidence from Developing Countries. Application of the FMOLS Approach
The present study aims to evaluate the impact of foreign assistance on income inequality of selected developing economies. Panel co-integration technique is applied for the purpose of estimation. After confirming the pre-conditions for cointegration, we have applied the Fully Modified-OLS method to...
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| Format: | Article |
| Language: | English |
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National University of Sciences and Technology
2022-07-01
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| Series: | NUST Journal of Social Sciences and Humanities |
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| Online Access: | https://njssh.nust.edu.pk/index.php/njssh/article/view/88 |
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| author | Misbah Nosheen Sundas Maqbool Syed Hila Mubarak Amanat Ali |
| author_facet | Misbah Nosheen Sundas Maqbool Syed Hila Mubarak Amanat Ali |
| author_sort | Misbah Nosheen |
| collection | DOAJ |
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The present study aims to evaluate the impact of foreign assistance on income inequality of selected developing economies. Panel co-integration technique is applied for the purpose of estimation. After confirming the pre-conditions for cointegration, we have applied the Fully Modified-OLS method to estimate the association between foreign aid and income inequality. Controlling for other variables, we find a positive and significant association between foreign aid and inequality. The empirical results are robust concerning the sub-samples of developing economies selected according to the income classification of the World Bank. The empirical results are also robust concerning the alternative measure of income inequality.
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| format | Article |
| id | doaj-art-a7b901fdd3f74e5b955a4f19b5f8f9ca |
| institution | DOAJ |
| issn | 2520-503X 2523-0026 |
| language | English |
| publishDate | 2022-07-01 |
| publisher | National University of Sciences and Technology |
| record_format | Article |
| series | NUST Journal of Social Sciences and Humanities |
| spelling | doaj-art-a7b901fdd3f74e5b955a4f19b5f8f9ca2025-08-20T03:20:44ZengNational University of Sciences and TechnologyNUST Journal of Social Sciences and Humanities2520-503X2523-00262022-07-0172The Impact of Foreign Aid on Income Inequality: Evidence from Developing Countries. Application of the FMOLS ApproachMisbah Nosheen0Sundas Maqbool1Syed Hila Mubarak2Amanat Ali3Department of Economics, Hazara University, Mansehra, PakistanDepartment of Economics, Hazara University, Mansehra, PakistanDepartment of Economics, Hazara, University, Mansehra, PakistanSchool of Economics, Quaid-i-Azam University, Islamabad, Pakistan The present study aims to evaluate the impact of foreign assistance on income inequality of selected developing economies. Panel co-integration technique is applied for the purpose of estimation. After confirming the pre-conditions for cointegration, we have applied the Fully Modified-OLS method to estimate the association between foreign aid and income inequality. Controlling for other variables, we find a positive and significant association between foreign aid and inequality. The empirical results are robust concerning the sub-samples of developing economies selected according to the income classification of the World Bank. The empirical results are also robust concerning the alternative measure of income inequality. https://njssh.nust.edu.pk/index.php/njssh/article/view/88Foreign AidInequalityGini IndexPedroni Test |
| spellingShingle | Misbah Nosheen Sundas Maqbool Syed Hila Mubarak Amanat Ali The Impact of Foreign Aid on Income Inequality: Evidence from Developing Countries. Application of the FMOLS Approach NUST Journal of Social Sciences and Humanities Foreign Aid Inequality Gini Index Pedroni Test |
| title | The Impact of Foreign Aid on Income Inequality: Evidence from Developing Countries. Application of the FMOLS Approach |
| title_full | The Impact of Foreign Aid on Income Inequality: Evidence from Developing Countries. Application of the FMOLS Approach |
| title_fullStr | The Impact of Foreign Aid on Income Inequality: Evidence from Developing Countries. Application of the FMOLS Approach |
| title_full_unstemmed | The Impact of Foreign Aid on Income Inequality: Evidence from Developing Countries. Application of the FMOLS Approach |
| title_short | The Impact of Foreign Aid on Income Inequality: Evidence from Developing Countries. Application of the FMOLS Approach |
| title_sort | impact of foreign aid on income inequality evidence from developing countries application of the fmols approach |
| topic | Foreign Aid Inequality Gini Index Pedroni Test |
| url | https://njssh.nust.edu.pk/index.php/njssh/article/view/88 |
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