Foreign direct investment and income inequality: Does institutional quality matter?
This research examines the impacts of FDI inflows, institutional quality (IQ) and their interaction on income inequality in 36 Asian countries over the period 2000-2018. Results demonstrate that FDI exacerbates income inequality, and the improvement in IQ from FDI diminishes this detrimental impact...
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| Veröffentlicht in: | The journal of international trade & economic development 2021-11, Vol.30 (8), p.1231-1243 |
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| container_title | The journal of international trade & economic development |
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| creator | Huynh, Cong Minh |
| description | This research examines the impacts of FDI inflows, institutional quality (IQ) and their interaction on income inequality in 36 Asian countries over the period 2000-2018. Results demonstrate that FDI exacerbates income inequality, and the improvement in IQ from FDI diminishes this detrimental impact until a threshold of IQ, then beyond that FDI reduces income inequality. Meanwhile, institutional quality reduces income inequality, and this beneficial effect is intensified with the rising FDI inflows. Notably, IQ moderates the impact of FDI on income inequality through the internal mechanism of government effectiveness, control of corruption, political stability and absence of violence/terrorism, and rule of law. |
| doi_str_mv | 10.1080/09638199.2021.1942164 |
| format | Article |
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| identifier | ISSN: 0963-8199 |
| ispartof | The journal of international trade & economic development, 2021-11, Vol.30 (8), p.1231-1243 |
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| language | eng |
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| source | EBSCOhost Business Source Complete |
| subjects | Asian countries Corruption FDI inflows Foreign investment Income inequality institutional quality Intelligence tests Rule of law Terrorism |
| title | Foreign direct investment and income inequality: Does institutional quality matter? |
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