Foreign direct investment and income inequality in Latin America: a sectoral analysis

1 April 2016 | Publication

Work area(s)

Economic development

Topic(s)

Inequality Foreign direct investment Income distribution Macroeconomics

Foreign direct investment and income inequality in Latin America: a sectoral analysis

- Author: Suanes, Macarena
- Physical description: páginas. 45-6
- UN symbol (Signature): LC/G.2676-P
- Date: 1 April 2016

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Abstract

This paper analyses the relationship between foreign direct investment (FDI) and income inequality in Latin America. In particular, it estimates the effect of FDI from a sectoral perspective, identifying three major sectors: the primary sector, manufacturing industry and services. Using a data panel for 13 economies in the 1980-2009 period, empirical evidence was found for a positive effect of FDI on income inequality in the service and manufacturing sectors.

SDG(s)

10. Reduce inequalities 1. No poverty 16. Peace, justice and strong institutions