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

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

Author: Suanes, Macarena Physical Description: páginas. 45-6 Date: April 2016 ECLAC symbol: LC/G.2676-P

Description

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.