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Foreign direct investment, labour unionization and income inequality of Korea

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  • Jai S. Mah

Abstract

The Korean economy has witnessed significant expansion of Foreign Direct Investment (FDI) inflows and decrease in labour unionization ratio. This article analyses their effect on income inequality during 1982--2008. The small sample cointegration test and the error correction model confirm the existence of cointegration among the concerned variables. The error correction model shows that the increasing values of FDI inflows and the decreasing labour unionization ratio have led to deterioration in income inequality.

Suggested Citation

  • Jai S. Mah, 2012. "Foreign direct investment, labour unionization and income inequality of Korea," Applied Economics Letters, Taylor & Francis Journals, vol. 19(15), pages 1521-1524, October.
  • Handle: RePEc:taf:apeclt:v:19:y:2012:i:15:p:1521-1524
    DOI: 10.1080/13504851.2011.637888
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    Cited by:

    1. Elisa Giuliani & Chiara Macchi, 2013. "Multinational Corporations’ Economic And Human Rights Impacts On Developing Countries: A Review And Research Agenda," Discussion Papers 2013/158, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.

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