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The purpose of this paper is to assess the relationship between foreign direct investment (FDI) and poverty at the macro-pathway in selected developing countries. The contribution to host countries from FDI can take several forms, such as the transfer of technology, human capital development, increased competition in domestic markets, and the generation of corporate tax revenues, among others. The paper develops a data set and an econometric model to analyse FDI flows and poverty relations at the macro level panel data set. Results show that there is statistically significant relationship between FDI and poverty and it is obvious that FDI reduces poverty in selected developing countries. (C) 2014 The Authors. Published by Elsevier Ltd. Selection and peer review under responsibility of Organizing Committee of BEM 2013.SciencePark Res, Org & Counseling Ltd; Acad World Educ & Res Ctr; Hacettepe Univ; Eastern Mediterranean Univ; Near E Univ; Zirve Uni

This paper explores how foreign direct investment (FDI) and other determinants impact income inequality in Turkey in the short-and long-run. We apply the ARDL (AutoRegressive Distributed Lag) modelling approach, which is suitable for small samples. The data for the study cover the years from 1970 to 2008. The empirical results indicate the existence of a cointegration relationship among the variables. The positive impact of the FDI growth rate on income inequality, worsening inequality, is shown to be significant in the short-run, though at the 10% significance level only and with a quantitatively small impact, and insignificant in the long-run. In other words, FDI increases income inequality initially somewhat but this effect disappears in the long run. The literacy rate clearly reduces inequality in the long run, but also in the short run. On the other hand, population growth worsens inequality in the long run, and the effect is quite large, though it has no statistically significant effect on inequality in the short run. Also, an increase in GDP growth reduces inequality especially in the short run (at a 5% level of significance) but also in the long run (though only at the 10% level).JEL Classification: D31, F21, C32, C13

This paper analyzes whether and to what extent the inflow of FDI is affected before and after the occurence of a financial crisis in developing countries. The paper uses a semiparametric Generalized Partial Linear Models (GPLM) regression approach to check the appropriateness and effectiveness of financial crisis in the FDI regression model. The results indicate that FDI inflows decrease in the years after a financial crisis and an upturn in FDI inflows the year before a financial crisis hit the country. Santrauka Straipsnyje keliamas klausimas - kokia kryptimi ir kokiu stiprumu tiesioginiu užsienio investiciju (TUI) iplaukas i besivystančios šalies šeimininkes ūki veikia finansu. krize kapitala priimančioje šaly‐je. Autoriu formuluojamoms hipotezems patvirtinti ar paneigti naudojamas semiparametres regresijos modelis. Gauti rezultatai rodo, kad TUI turi tendencija mažeti ne tik finansu. krizes metais. Būdamos inertiškos, TUI mažeja net finansu. krizei besivystančioje šalyje pasibaigus.

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