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Justus-Liebig-Universität Gießen (JLU) >
Professur für Volkswirtschaftslehre und Entwicklungsländerforschung, Universität Gießen >
Entwicklungsökonomische Diskussionsbeiträge, Professur f. VWL u. Entwicklungsländerforschung, JLU Gießen >
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http://hdl.handle.net/10419/22388
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| Title: | | Foreign Direct Investment and Income Inequality revisited  |
| Authors: | | Hemmer, Hans-Rimbert Krüger, Ralf Seith, Jennifer |
| Issue Date: | | 2005 |
| Series/Report no.: | | Entwicklungsökonomische Diskussionsbeiträge / Universität Giessen, Professur für Volkswirtschaftslehre und Entwicklungsländerforschung 32 |
| Abstract: | | ? This paper discusses the impact of FDI on income inequality. ? The theoretical ways in which FDI might influence income inequality between countries as well as within a given country are discussed, with special attention also given to employment generation effects. ? Revisiting previous research we show that significant effects of FDI are hard to find in more recent work, with older studies showing mixed results. ? Re-estimating the prominent study of Tsai (1995) with newer data we augment it by allowing for FDI-influences on inequality by region, income level, and export focus. ? We find no overall impact of FDI on inequality. Also region and income differentiated estimations show no country group-specific impacts of FDI. Only in the export focusdifferentiated estimations we find some evidence of an inequality increasing impact of FDI in countries primarily exporting primary goods (without fuel). ? FDI thus do not have significant implications for income distribution in general. |
| Document Type: | | Working Paper |
| Appears in Collections: | | Entwicklungsökonomische Diskussionsbeiträge, Professur f. VWL u. Entwicklungsländerforschung, JLU Gießen
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