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The Impact of Foreign Direct Investment on Income Inequality in Bulgaria

Author

Listed:
  • Svilena Mihaylova

    (UE-Varna, Bulgaria)

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.

Suggested Citation

  • Svilena Mihaylova, 2014. "The Impact of Foreign Direct Investment on Income Inequality in Bulgaria," Ikonomiceski i Sotsialni Alternativi, University of National and World Economy, Sofia, Bulgaria, issue 4, pages 25-40, December.
    • Handle: RePEc:nwe:iisabg:y:2014:i:4:p:25-40
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    More about this item

    Keywords

    foreign direct investment; income inequality;

    JEL classification:

    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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