The Impact of Foreign Direct Investment on Income Inequality in Bulgaria

Svilena Mihaylova

Ikonomiceski i Sotsialni Alternativi, 2014, issue 4, 25-40

Abstract: The paper examines the impact of foreign direct investment (FDI) on income inequality in Bulgaria in the period 2000 – 2012. Through analysis of the sectoral and regional distribution of FDI and its dynamics, the paper identifies those characteristics of FDI which have the potential to enhance the sectoral and regional differences in wage earnings and thus to influence income inequality in the country. Furthermore, in order to investigate the distributional impact of FDI, multiple regression analysis is used. The results show that in the period under study FDI contributes to the increase of income inequality in the country.

Keywords: foreign direct investment; income inequality (search for similar items in EconPapers)
JEL-codes: D31 F62 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:nwe:iisabg:y:2014:i:4:p:25-40

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