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Trade, foreign direct investments (FDI) and income inequality: Empirical evidence from transition countries

Chiara Franco and Elisa Gerussi

The Journal of International Trade & Economic Development, 2013, vol. 22, issue 8, 1131-1160

Abstract: The aim of the article is to verify whether trade and inward foreign direct investments (FDI) may affect income distribution in a sample of 17 Transition Countries (TCs) over the period 1990-2006. In line with most of the previous literature, FDI do not have significant effects on income inequalities, whereas trade, especially when occurs with developed countries, seems to be more relevant. Different results are found when we take into consideration the educational system which represents an important channel through which FDI and trade may affect inequality.

Date: 2013
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DOI: 10.1080/09638199.2011.647048

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The Journal of International Trade & Economic Development is currently edited by Pasquale Sgro, David E.A. Giles and Charles van Marrewijk

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