FDI and Income Inequality - Evidence from Latin American Economies

16 Pages Posted: 9 Oct 2014

See all articles by Dierk Herzer

Dierk Herzer

University of the German Federal Armed Forces - Helmut Schmidt Universität

Philipp Hühne

University of the German Federal Armed Forces - Helmut Schmidt Universität

Peter Nunnenkamp

University of Kiel

Date Written: November 2014

Abstract

This paper analyzes whether foreign direct investment (FDI) has contributed to the wide income gaps in Latin America. Panel cointegration techniques as well as regression analysis are performed to assess the impact of inward FDI stocks on income inequality among households in Latin American host countries. The panel cointegration analysis typically reveals a significant and positive effect on income inequality. There is no evidence for reverse causality. The findings are fairly robust to the choice of different estimation methods, sample selection and the period of observation.

Suggested Citation

Herzer, Dierk and Hühne, Philipp and Nunnenkamp, Peter, FDI and Income Inequality - Evidence from Latin American Economies (November 2014). Review of Development Economics, Vol. 18, Issue 4, pp. 778-793, 2014. Available at SSRN: https://ssrn.com/abstract=2507556 or http://dx.doi.org/10.1111/rode.12118

Dierk Herzer

University of the German Federal Armed Forces - Helmut Schmidt Universität ( email )

Holstenhofweg 85
Hamburg, 22008
Germany

Philipp Hühne

University of the German Federal Armed Forces - Helmut Schmidt Universität

Holstenhofweg 85
Hamburg, 22008
Germany

Peter Nunnenkamp

University of Kiel ( email )

D-24100 Kiel
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
0
Abstract Views
404
PlumX Metrics