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Theoretical Aspects Of The Relation Between Foreign Direct Investment And Income Inequality

Author

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  • Svilena Mihaylova

    (Varna University of Economics)

Abstract

The aim of the article is to clarify the theoretical aspects of the impact of foreign direct investment (FDI) on income inequality. There are systematized the main theories dealing with this problem, and there is also made an attempt at formulating the transmission mechanisms through which FDI affects income distribution. Analysis shows that the theoretical foundations of the interrelation under consideration are rather contradictory, which largely turns the issue into an empirical one and imposes the need for studies, which, taking into consideration the specific economic and social conditions in the individual countries, can reveal the specific character of the manifestation of the distribution effect of FDI.

Suggested Citation

  • Svilena Mihaylova, 2012. "Theoretical Aspects Of The Relation Between Foreign Direct Investment And Income Inequality," Business & Management Compass, University of Economics Varna, issue 3, pages 78-88.
    • Handle: RePEc:vrn:journl:y:2012:i:3:p:78-88
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    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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