FOREIGN DIRECT INVESTMENT AND INCOME INEQUALITY: HUMAN CAPITAL MATTERS
- Authors
- Lin, Shu-Chin; Kim, Dong-Hyeon; Wu, Yi-Chen
- Issue Date
- 12월-2013
- Publisher
- WILEY
- Keywords
- Foreign Direct Investment; Income Inequality; Human Capital; Instrumental Variables; Threshold Regression
- Citation
- JOURNAL OF REGIONAL SCIENCE, v.53, no.5, pp.874 - 896
- Indexed
- SSCI
SCOPUS
- Journal Title
- JOURNAL OF REGIONAL SCIENCE
- Volume
- 53
- Number
- 5
- Start Page
- 874
- End Page
- 896
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/101484
- DOI
- 10.1111/jors.12077
- ISSN
- 0022-4146
- Abstract
- This paper empirically examines whether human capital defines the association between foreign direct investment (FDI) and income inequality. Rather than focusing on one country or region, we investigate with a broad cross section of countries to address parameter heterogeneity across countries. Using the instrumental variable threshold regressions approach, we find a significant threshold level of human capital, below which FDI exerts a disproportionately positive (negative) impact on the relatively poor (rich) and hence improves income distribution. Beyond this critical level, however, FDI benefits (harms) the nonpoor (nonrich) most and thus exacerbates income inequality.
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Collections - College of Life Sciences and Biotechnology > Department of Food and Resource Economics > 1. Journal Articles
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