Does External Resource Inflows Improve Income Distribution? The West Africa Experience

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@article{1717288,
      author = {Odoni Miedideke, Alwell Nteegah, Emeka Nkoro},
      title = {Does External Resource Inflows Improve Income Distribution? The West Africa Experience},
      journal = {Iconic Research And Engineering Journals},
      year = {2026},
      volume = {9},
      number = {11},
      pages = {447-459},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1717288.pdf},
      abstract = {In recent decades, West African countries have experienced significant inflows of aid, remittances, and foreign investments, yet persistent challenges in income distribution remain. This paradox raises questions about the effectiveness of external resources in promoting income distribution, motivating the need for a comprehensive empirical investigation. This study examined the effect of external resource inflows on income distribution in the West Africa sub-region, focusing on net official development assistance, private remittances, and foreign direct investment as proxies of external resource inflows as well as income distribution (proxied by Gini index). The study used annual panel data spanning 2009 – 2023, sourced from the World Bank’s World Development Indicators and African Development Bank. The major technique of data analysis adopted is System Generalized Method of Moments (GMM) approach. Empirical results indicate that net official development assistance has a negative and significant effect on Gini index in West Africa sub-region; private remittances has a negative and significant effect on Gini index in West Africa sub-region; foreign direct investment has a negative and significant effect on Gini index in West Africa sub-region. The findings suggest that external resources have the potential to equitable income distribution in West Africa sub-region. Based on the findings, the study concluded that external resource inflows significantly promote equitable distribution of income in the West Africa sub-region. Based on these findings and conclusion, it was recommended among others that policymakers should strengthen institutional frameworks and accountability mechanisms to ensure that external resources are directed toward investments that generate employment, reduce inequality, and alleviate poverty.},
      month = {May},
      doi = {https://doi.org/10.64388/IREV9I11-1717288}
  }