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Foreign Direct Investment and Income Inequality in Developing Countries: An Exploration of the Causal Relationship Using Industry Level FDI Data |
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Abstract:
| This paper examines the effect of foreign direct investment on income inequality in developing countries. Industry level data is used in an attempt to further the understanding of the causal mechanisms behind the relationship of FDI and income inequa |
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Association:
Name: The Midwest Political Science Association
URL: http://www.indiana.edu/~mpsa/
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MLA Citation:
| Stringer, John. "Foreign Direct Investment and Income Inequality in Developing Countries: An Exploration of the Causal Relationship Using Industry Level FDI Data" Paper presented at the annual meeting of the The Midwest Political Science Association, Palmer House Hilton, Chicago, Illinois, Apr 20, 2006 Online <PDF>. 2008-08-16 <http://www.allacademic.com/meta/p140292_index.html> |
APA Citation:
| Stringer, J. M. (2006, Apr) "Foreign Direct Investment and Income Inequality in Developing Countries: An Exploration of the Causal Relationship Using Industry Level FDI Data" Paper presented at the annual meeting of the The Midwest Political Science Association, Palmer House Hilton, Chicago, Illinois Online <PDF> Retrieved 2008-08-16 from http://www.allacademic.com/meta/p140292_index.html |
Publication Type: Conference Paper/Unpublished Manuscript
Abstract: This paper examines the effect of foreign direct investment on income inequality in developing countries. Industry level data is used in an attempt to further the understanding of the causal mechanisms behind the relationship of FDI and income inequa |
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| Document Type: | PDF | | Page count: | 27 | | Word count: | 7610 | | Text sample: | | Income Inequality and Foreign Direct Investment* John Stringer Graduate Student Department of Political Science University of Notre Dame jstring1@nd.edu prepared for the 2006 annual Midwest Political Science Association conference Please do not cite without permission Abstract: This paper addresses the ongoing debate about the effect that inward foreign direct investment (FDI) has on income inequality. While neo-liberal economic theory suggests that FDI positively effects development which in turn will reduce income inequality dependency theory states that FDI often referred | | if inequality is a concern when investing. If it is not it may be highly correlated with another reason for locating within a certain country such as cheap labor. This paper attempted to test two competing hypotheses concerning FDI’s effect on income inequality. Through a panel time series analysis statistically significant evidence was found supporting the hypothesis rooted in dependency theory. This hypothesis states that increasing foreign direct investment in or foreign penetration of a host country leads to |
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