Effects of FDI Flows and Trade Openness on Income Inequality: Evidence from Australia and the G7 Countries

Anna Ploszaj, Tarlok Singh and Jen-Je Su
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Anna Ploszaj: Griffith Business School, Griffith University, Australia
Tarlok Singh: Griffith Business School, Griffith University, Australia
Jen-Je Su: Victoria University, Melbourne, Australia

International Journal of Business and Economics, 2020, vol. 19, issue 3, 301-317

Abstract: This study uses the time-series data to examine the long-run effects of FDI and trade openness on income inequality in Australia as well as in the G7 countries. The model is estimated using annual data for the period 1984–2014 (Canada: 1981–2011). The estimation is carried out using the ARDL-Bounds test. The results, which suggest a long-run relationship among the model variable, would be useful for the policy makers who seek to promote the international trade and expand the flow of foreign investment, while at the same time attempting to have more equal income distribution within the country.

Keywords: ARDL Model; FDI; Income Inequality; Trade Openness (search for similar items in EconPapers)
JEL-codes: D63 F16 F21 F60 (search for similar items in EconPapers)
Date: 2020
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