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

Author

Listed:
  • Anna Ploszaj

    (Griffith Business School, Griffith University, Australia)

  • Tarlok Singh

    (Griffith Business School, Griffith University, Australia)

  • Jen-Je Su

    (Victoria University, Melbourne, Australia)

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.

Suggested Citation

  • Anna Ploszaj & Tarlok Singh & Jen-Je Su, 2020. "Effects of FDI Flows and Trade Openness on Income Inequality: Evidence from Australia and the G7 Countries," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 19(3), pages 301-317, December.
    • Handle: RePEc:ijb:journl:v:19:y:2020:i:3:p:301-317
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    ARDL Model; FDI; Income Inequality; Trade Openness;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F60 - International Economics - - Economic Impacts of Globalization - - - General

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