Foreign direct investment, growth and income inequality in less developed countries
Abstract
How does foreign direct investment (FDI) affect economic growth in less developed countries (LDCs)? What is its association with changes in the income distribution? This paper empirically examines these issues within a cross section of less developed countries between 1970 and 1989. FDI is positively associated with economic growth within this sample of countries. However, there is no strong association between FDI and changes in income inequality within these same countries and over this same time period. Hence, there is no evidence that FDI is increasing income inequality within this group of LDCs.Download Info
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Bibliographic Info
Article provided by Taylor and Francis Journals in its journal International Review of Applied Economics.
Volume (Year): 19 (2005)
Issue (Month): 3 ()
Pages: 289-300
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Related research
Keywords: Economic growth; income inequality; foreign direct investment; JEL Classification: O15; F21; F43;Find related papers by JEL classification:
- JEL - Labor and Demographic Economics - - - - -
- Cla - Mathematical and Quantitative Methods - - - - -
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Hisako KAI & Shigeyuki HAMORI, 2009.
"Globalization, Financial Depth, and Inequality in Sub-Saharan Africa,"
Discussion Papers
0912, Graduate School of Economics, Kobe University.
- Hisako Kai & Shigeyuki Hamori, 2009. "Globalization, financial depth, and inequality in Sub-Saharan Africa," Economics Bulletin, AccessEcon, vol. 29(3), pages 2025-2037.
- Anita Ghatak & Ferda Halicioglu, 2007.
"Foreign direct investment and economic growth: some evidence from across the world,"
Global Business and Economics Review,
Inderscience Enterprises Ltd, vol. 9(4), pages 381-394, January.
- Halicioglu, Anita & Halicioglu, Ferda, 2006. "Foreign Direct Investment And Economic Growth: Some Evidence From Across The World," MPRA Paper 3563, University Library of Munich, Germany, revised 2007.
- Adams, Samuel, 2009. "Foreign Direct investment, domestic investment, and economic growth in Sub-Saharan Africa," Journal of Policy Modeling, Elsevier, vol. 31(6), pages 939-949, November.
- Peter Nunnenkamp & Rainer Schweickert & Manfred Wiebelt, 2007.
"Distributional Effects of FDI: How the Interaction of FDI and Economic Policy Affects Poor Households in Bolivia,"
Development Policy Review,
Overseas Development Institute, vol. 25(4), pages 429-450, 07.
- Nunnenkamp, Peter & Schweickert, Rainer & Wiebelt, Manfred, 2006. "Distributional effects of FDI: How the interaction of FDI and economic policy affects poor households in Bolivia," Proceedings of the German Development Economics Conference, Göttingen 2007 35, Verein für Socialpolitik, Research Committee Development Economics.
- Peter Nunnenkamp & Rainer Schweickert & Manfred Wiebelt, 2006. "Distributional Effects of FDI: How the Interaction of FDI and Economic Policy Affects Poor Households in Bolivia," Kiel Working Papers 1281, Kiel Institute for the World Economy.
- Nunnenkamp, Peter & Schweickert, Rainer & Wiebelt, Manfred, 2006. "Distributional effects of FDI: How the interaction of FDI and economic policy affects poor households in Bolivia," Open Access publications from Kiel Institute for the World Economy 35, Kiel Institute for the World Economy.
- Adams, Samuel, 2008. "Globalization and income inequality: Implications for intellectual property rights," Journal of Policy Modeling, Elsevier, vol. 30(5), pages 725-735.
- Don P. Clark & Jannett Highfill & Jonas de Oliveira Campino & Scheherazade S. Rehman, 2011. "FDI, Technology Spillovers, Growth, and Income Inequality: A Selective Survey," Global Economy Journal, De Gruyter, vol. 11(2), pages 1.
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