FDI and income inequality: evidence from a panel of US states

Arbeitspapier

This study employs state-level panel data to explore the relationship between inward foreign direct investment (FDI) and income inequality in the United States. Using panel cointegration techniques that allow for cross-sectional heterogeneity, cross-sectional dependence, and endogenous regressors, we find that the short-run effects of FDI on income inequality are insignificant or weakly significant and negative. In the long run, however, FDI exerts a significant and robust negative effect on income inequality in the United States. This result for the United States as a whole does not imply that FDI narrows income gaps in the long run in each individual state. There is considerable heterogeneity in the long-run effects of FDI on income inequality across states, with some states (21 out of 48 cases) exhibiting a positive relationship between FDI in income inequality.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Kiel Working Paper ; No. 1579

Klassifikation und Themen

• Klassifikation: Wirtschaft ; International Investment; Long-term Capital Movements ; Personal Income, Wealth, and Their Distributions ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
• Thema: FDI ; Inequality ; Panel Cointegration ; United States

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Chintrakarn, Pandej ; Herzer, Dierk ; Nunnenkamp, Peter
• Ereignis: Veröffentlichung
• (wer): Kiel Institute for the World Economy (IfW)
• (wo): Kiel
• (wann): 2010

Weitere Informationen

• Handle: http://hdl.handle.net/10419/30062
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ