期刊
JOURNAL OF INTERNATIONAL TRADE & ECONOMIC DEVELOPMENT
卷 30, 期 8, 页码 1123-1137出版社
ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
DOI: 10.1080/09638199.2021.1925331
关键词
FDI; income inequality; governance; system GMM estimator; PMG estimator
类别
资金
- University of Finance Marketing (UFM)
The study found that FDI increases income inequality in developed countries with good governance, but reduces it in developing countries with poor governance. Additionally, governance and education were identified as factors that can help narrow income inequality in both developed and developing countries, while economic growth has the opposite effect. These findings provide valuable policy implications for central governments in addressing income inequality.
Foreign direct investment (FDI) plays a crucial role in the fight against poverty and income inequality in countries worldwide. How does the governance environment decisively contribute to the difference in the FDI - income inequality relationship between developed and developing countries? To answer this question, the study empirically assesses the effect of FDI on income inequality for a group of 24 developed countries with the good governance environment and a group of 37 developing countries with the poor one from 2005 to 2018 using the two-step system GMM Arellano-Bond estimator. The estimated results indicate some interesting findings. First, FDI increases income inequality in developed countries but reduces it in developing countries. Second, in both groups of countries governance and education narrow income inequality while economic growth widens it. In particular, the robustness of estimates is checked by the PMG estimator. These findings suggest some policy implications for central governments about policies and regulations relating to the fight against income inequality.
作者
我是这篇论文的作者
点击您的名字以认领此论文并将其添加到您的个人资料中。
推荐
暂无数据