Determinants of Income Inequality in East Africa: The Role of Gendered Foreign Aid

Mose, Naftaly and Otieno, Shem and Kipchirchir, Edwin and Fumey, Michael (2024) Determinants of Income Inequality in East Africa: The Role of Gendered Foreign Aid. South Asian Journal of Social Studies and Economics, 21 (9). pp. 79-90. ISSN 2581-821X

[thumbnail of Mose2192024SAJSSE120493.pdf] Text
Mose2192024SAJSSE120493.pdf - Published Version

Download (453kB)

Abstract

This manuscript investigates the impact of gender-focused foreign aid on income inequality in East Africa, a topic with limited existing research. This research adds value by providing practical recommendations for policymakers to enhance the effectiveness of aid programs in fostering economic equity through targeted interventions. Using the Generalized Method of Moments (GMM) on panel data from three East African countries for over a decade provides robust evidence that gender-sensitive aid can significantly reduce income inequality. Our findings indicate that gendered aid, education and government expenditure were the driving force towards lower income inequality. Additionally, trade openness and inflation rates reduce income inequality in sampled countries, though insignificant. In contrast, the findings provide evidence that high economic growth tends to increase income inequality in East Africa and support evidence of positive channels. The major findings suggest that, in general, gendered aid does reduce income inequality. We observe that there is a need for more focused efforts and balanced aid to achieve equality goals. Increased focus and aid allocation on sectors like agriculture, digital economy, supply chains and transport can enhance women's access to opportunities and economic diversification, but a declining focus on health and education could undermine gains in their well-being.

Item Type: Article
Subjects: South Asian Library > Social Sciences and Humanities
Depositing User: Unnamed user with email support@southasianlibrary.com
Date Deposited: 18 Sep 2024 08:06
Last Modified: 18 Sep 2024 08:06
URI: http://journal.repositoryarticle.com/id/eprint/1490

Actions (login required)

View Item
View Item