The impact of <scp>FDI</scp> on income inequality: Evidence from the perspective of financial development

Lee, Chi‐Chuan; Cheng, Chih‐Yang

doi:10.1002/ijfe.2143

Cited by 56 publications

(31 citation statements)

References 61 publications

(85 reference statements)

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“…To minimize errors in the regression results from the omission of variables, the following control variables are selected to the models. Economic development ( lnGDP ) is expressed by the regional GDP, while foreign direct investment ( lnFDI ) can stimulate green innovation in local industries because foreign companies bring capital and advanced technologies (Gao et al 2021 ; Lee et al 2022 ). Using the weight of industrial added value in regional GDP, the industrial structure ( lnIS ) significantly improves energy efficiency (Long et al 2016 ).…”

Section: Methodology and Datamentioning

confidence: 99%

Nonlinear and spatial spillover effects of the digital economy on green total factor energy efficiency: evidence from 281 cities in China

Zhao

Peng

Wen

et al. 2022

Environ Sci Pollut Res

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Although the digital economy has become a new driving force for development worldwide, it is still unclear how digital economy development affects green total factor energy efficiency (GTFEE). Using panel data from 281 prefecture-level cities in China from 2003 to 2018, this study empirically analyzes the effect of digital economy development on GTFEE by adopting a dynamic panel model, a mediation effect model, a dynamic threshold panel model, and a spatial Durbin model. The empirical results show that digital economy development has a significantly negative direct effect on GTFEE. The digital economy can impact GTFEE by the mechanisms of electrification, hollowing out of industrial scale, and hollowing out of industrial efficiency. Neither innovation nor environmental regulations significantly change this negative impact. The dynamic threshold panel model shows a nonlinear relationship between digital economy development and GTFEE, which indicates that the effect of digital economy development on GTFEE significantly inverts from negative to positive as the digital economy develops. In addition, GTFEE has a significantly positive spatial correlation, and the digital economy has a positive spatial spillover effect on GTFEE.

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Section: Methodology and Datamentioning

confidence: 99%

Nonlinear and spatial spillover effects of the digital economy on green total factor energy efficiency: evidence from 281 cities in China

Zhao

Peng

Wen

et al. 2022

Environ Sci Pollut Res

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“…In recent literature, FDI and inequality are framed in the same picture and have gained remarkable popularity. In this connection [ 10 , 11 ], disclose that FDI contributes significantly to determining inequality. Conversely, the studies conducted by [ 12 , 13 ] argued that FDI did not take part in the variation of inequality.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of foreign direct investment on income inequality: Evidence from selected Asian economies

et al. 2023

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The United Nations lists 17 Sustainable Development Goals for Agenda 2030, one of which is SDG-10, which focuses on eradicating inequality and addressing critical regional and global challenges. The fight against income inequality is heavily dependent on foreign direct investment all over the world. In this connection, the present study aimed to investigate the individual and interactive impact of foreign direct investment, human capital, and economic growth on income inequality by employing the interactive model. Based on the panel data set covering ten counties spanning each region of Asia from 1990 to 2020. In light of the slope homogeneity, cross-sectional dependency tests, and Westerlund co-integration test, we discover that all of the variables are cointegrated over the long run. A cross-sectional IPS (CIPS) unit root test is employed to check stationarity. Additionally, the study used the Augmented Mean Group (AMG) approach to produce accurate results in estimation. The results confirm that FDI affects inequality negatively. However, the impact of FDI is more effective in the presence of human capital. It means that human capital deepens the effect of FDI on inequality; the country will be more effective in reducing inequality by having a higher level of human capital and consider it a more powerful tool to bring equality. To reduce inequality, it is suggested that a policy mix of FDI and HC could be made.

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“…On the other hand, in another study on Sub-Saharan African countries, Anetor et al (2020) concluded that FDI inflows exert an inverted-U impact on poverty and the Sub-Saharan African nations are yet to attract the threshold level of FDI required to ensure reduction in their respective poverty levels. Furthermore, as far as the FDI inflows-Gini index nexus is concerned, Lee et al (2020) and Xu et al (2021) recently argued that FDI inflows are effective in curbing the Gini index in the case of 37 global economies and Sub-Saharan African nations, respectively. Summing up, the majority of the studies conclude that FDI significantly mitigates the adverse repercussions of poverty.…”

Section: Literature Reviewmentioning

confidence: 99%

An estimation of the macroeconomic determinants of income poverty in Pakistan? Evidence from a non‐linearARDLapproach

Chishti

Rehman

Murshed

2021

Journal of Public Affairs

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Poverty is considered a complex and multifaceted phenomenon that can be subjected to various socio-economic factors. This study aims to assess the potential asymmetric influence of foreign direct investment (FDI) and trade openness, controlling for economic growth, health expenditure, and population size on income poverty in Pakistan from 1972 to 2018 by employing the Non-Linear Autoregressive-Distributed Lag (NARDL) approach. The results exhibit the presence of long-run asymmetries among FDI, trade openness, and income poverty. The results also reveal that poverty reacts to the positive and negative trends in FDI and trade openness atypically. Moreover, the findings also confirm that population growth and health expenditures ameliorate the deleterious repercussions of income poverty. For policy-makers having an interest in asymmetric nexus among FDI, trade openness, and income poverty. As per the findings, relevant policy level suggestions are recommended.

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The impact of FDI on income inequality: Evidence from the perspective of financial development

Cited by 56 publications

References 61 publications

Nonlinear and spatial spillover effects of the digital economy on green total factor energy efficiency: evidence from 281 cities in China

Nonlinear and spatial spillover effects of the digital economy on green total factor energy efficiency: evidence from 281 cities in China

Impact of foreign direct investment on income inequality: Evidence from selected Asian economies

An estimation of the macroeconomic determinants of income poverty in Pakistan? Evidence from a non‐linearARDLapproach

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