Foreign direct investment and income inequality: Does the relationship vary with absorptive capacity?

Wu, Jyun Yi; Hsu, Chih Chiang

doi:10.1016/j.econmod.2012.06.013

Cited by 99 publications

(89 citation statements)

References 31 publications

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“…Such an analysis is likely to shed more light on the interesting country differences which the results in this paper already point to. , 1975-2000and 1975Period 1975-2000Period 1975 ( (1) is an ordinary OLS regression, Column (2) is a IV-instruments lagged revenue with its own lags. Column (3) instruments V with NEIGHBOUR.…”

Section: Discussionmentioning

confidence: 99%

“…First stage F-values show F-statistic test variable for each first stage regression separately. Table A5: Gini coefficient with only income-based Gini, periods 1975-2000and 1975Period 1975-2000Period 1975 OLS IV OLS IV…”

Section: Discussionmentioning

confidence: 99%

“…In standard trade theory (as the Stolper-Samuelson theorem points out), trade openness should lead to a reduction of income equality by reducing the wage gap between skilled and unskilled workers in countries with abundant unskilled labour. Using cross-section evidence, Wu and Hsu (2012) find an indication that international trade has an equalizing effect on income distribution. On the other hand, openness works also towards increasing wage gaps by increasing the differences in returns to education and skills.…”

Section: Control Variablesmentioning

confidence: 98%

“…(1) (2) (3) (4) (5) (6) (7) (8) Table A6: Gini coefficient with only consumption-based Gini, periods 1975-2000and 1975Period 1975-2000Period 1975 OLS IV OLS IV…”

Section: Appendixmentioning

confidence: 99%

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The consequences of the value-added tax on inequality

Alavuotunki

Pirttilä

2015

WIDER Working Paper

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The adoption of the value-added tax has arguably been one of the most important tax policy measures worldwide, but is also one of the most heatedly debated. While some argue that the VAT has served as a useful tool to boost government revenue, others claim that it is also a regressive tax, contributing to increased inequality within the developing world. Using newly released high-quality macro data, this paper offers updated estimates of the revenue impacts of the VAT and the first estimates on its consequences on inequality at the macro level. The results from instrumental variable estimations reveal that the revenue consequences of the VAT have not been positive, contrasting results from earlier work. VAT adoption has not led to increased inequality, suggesting that the move to the VAT has not undermined equitable development.

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Control Variablesmentioning

confidence: 98%

“…(1) (2) (3) (4) (5) (6) (7) (8) Table A6: Gini coefficient with only consumption-based Gini, periods 1975-2000and 1975Period 1975-2000Period 1975 OLS IV OLS IV…”

Section: Appendixmentioning

confidence: 99%

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The consequences of the value-added tax on inequality

Alavuotunki

Pirttilä

2015

WIDER Working Paper

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“…The study used the panel cointegration analysis to show correlation between FDI and income inequality for sample of seven countries (Turkey, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Turkmenistan and Uzbekistan) with annual data from 1992-2012 (21 years). Moreover other studies have also shown a negative impact between FDI inflows and income inequality (Wu and Hsu, 2012;Ucal et al, 2014;Mihaylova, 2015).…”

Section: Foreign Direct Investments and Income Inequalitymentioning

confidence: 91%

The Effect of Foreign Direct Investment on Sustainable Development ASEAN 3 and ASEAN 5: A Conceptual Study

Yusof¹,

Ambak²,

Yamin³

et al. 2019

Proceedings of the Proceedings of the 1st International Conference on Finance Economics and Business, ICOFEB 2018, 12-13 Novemb

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Sustainable development is part of ASEAN 2025 vision. It is actively debated amongst ASEAN leaders due to the economic fluctuation, increasing in environmental pollution and wide income gap in ASEAN countries that can hinder the achievement of sustainable development. Therefore this study tries to analyse three indicators of sustainable development which are economic, environment and income distribution and the effect of foreign direct investment on these three indicators between ASEAN3 (Cambodia, Laos and Vietnam) and ASEAN5 (Malaysia, Indonesia, Philippines, Thailand and Singapore) based on the different levels of economic growth. Foreign direct investment is expected to have a different impact on the three indicators of sustainable development due to the different economic levels between ASEAN 3 and ASEAN 5. Previous researches have failed to show a consistent relationship between foreign direct investment and the three indicators of sustainable development. Moreover previous researches mostly looks at the effects of foreign direct investment on each individual indicator of sustainable development separately, but very little is done comprehensively by looking at the effects of foreign direct investment on all three sustainable development indicators. Especially on the comparative impact on ASEAN 3 and ASEAN 5. This paper is based on extensive literature. It is expected to prove that the dominant effect of foreign direct investment towards sustainable development and the effect might be different between ASEAN3 and ASEAN5 countries. Future studies should validate empirically the proposed research framework.

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On the transmission channels driving climate change‐income inequality nexus in sub‐Saharan African countries

Issoufou‐Ahmed,

Sebri

2024

Bus Strat Dev

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Climate change stands at the forefront of the worldwide agenda. Although its consequences are harmful to all humanity, some regions across the world remain more vulnerable than others. Sub‐Saharan Africa is one of the most suffering regions. In this paper, we investigate the climate change‐income inequality nexus in a panel of sub‐Saharan countries over the period 1990–2019. A greater emphasis is put on the potential transmission channels that drive this relationship. By using the recently developed method of moments quantile regression, we find that income inequality is exacerbated by the vulnerability to climate change. This relationship is still robust across all the quantiles with a greater effect at the highest quantile. The empirical findings reveal also the moderating role of agriculture, education, and gender through which the effect of climate change on income inequality is channeled. In light of the outcomes, the sub‐Saharan African region still needs appropriate combined mitigation and adaptation measures to efficiently combat the adverse effects of climate change.

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Foreign direct investment and income inequality: Does the relationship vary with absorptive capacity?

Cited by 99 publications

References 31 publications

The consequences of the value-added tax on inequality

The consequences of the value-added tax on inequality

The Effect of Foreign Direct Investment on Sustainable Development ASEAN 3 and ASEAN 5: A Conceptual Study

On the transmission channels driving climate change‐income inequality nexus in sub‐Saharan African countries

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