The Impact of Aid for Trade on Income Inequality: The Case of Upper-Middle-Income Countries
Ayşe Arı,
Jørgen T. Lauridsen
Abstract:AfT (Aid for Trade) in developing and less developed countries can help reduce income inequality while promoting exports. The present study analyses the effect of AfT on income inequality for 10 upper-middle-income countries using the Pesaran (2006) Common Correlated Effect estimator for 2003–2018. Total AfT had no significant impact on income inequality. Regarding specific AfT components, AfT inflows to develop infrastructure had no significant effect on income inequality. However, AfT funds for developing pr… Show more
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