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Trade, foreign direct investments (FDI) and income inequality: Empirical evidence from transition countries

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  • Chiara Franco
  • Elisa Gerussi

Abstract

The aim of the article is to verify whether trade and inward foreign direct investments (FDI) may affect income distribution in a sample of 17 Transition Countries (TCs) over the period 1990-2006. In line with most of the previous literature, FDI do not have significant effects on income inequalities, whereas trade, especially when occurs with developed countries, seems to be more relevant. Different results are found when we take into consideration the educational system which represents an important channel through which FDI and trade may affect inequality.

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  • Chiara Franco & Elisa Gerussi, 2013. "Trade, foreign direct investments (FDI) and income inequality: Empirical evidence from transition countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(8), pages 1131-1160, December.
    • Handle: RePEc:taf:jitecd:v:22:y:2013:i:8:p:1131-1160
    DOI: 10.1080/09638199.2011.647048
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    3. Anghel Ionuţ-Marian, 2017. "Measuring income inequality: comparative datasets and methodological deficiencies. An overview of income inequality in Romania during postsocialism," Social Change Review, Sciendo, vol. 15(1-2), pages 55-82, December.
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    7. Ribeiro, Ana Paula & Carvalho, Vitor & Ferreira, Mariana, 2020. "The effect of globalization on wage inequality: an application to the European Union before the Great Recession," MPRA Paper 110697, University Library of Munich, Germany.
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