Foreign Direct Investment and Income Inequality in Developing Countries: A System Dynamics Approach

Pard Teekasap ()
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Pard Teekasap: Thai-Nichi Institute of Technology

Chapter 54 in Proceedings of the International Conference on Managing the Asian Century, 2013, pp 483-490 from Springer

Abstract: Abstract This paper studies the relationship between foreign direct investment (FDI) and income inequality in developing countries. System dynamics method is used to analyze the dynamic of income inequality which is not covered in the previous literature. The results indicate that the Kuznets inverse-U curve is not symmetrical. In addition, unemployment rate plays a major role in determining income inequality.

Keywords: Foreign Direct Investment; Unemployment Rate; Host Country; Income Inequality; Capita Income (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-4560-61-0_54

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DOI: 10.1007/978-981-4560-61-0_54

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