The effects of FDI inflows on income inequality: Evidence from OECD countries
Lufei Teng Qianwen Bi
Income inequality is a concerned topic that attracts academia studies for many reasons. Among the long list of factors offered by scholars that contribute to income inequality, the impact of globalization has been extensively studies. This study uses a three-step analysis to examine the influence of Foreign Direct Investment (FDI) inflows on income distribution for Organization for Economic Cooperation (OECD) countries through panel data analysis techniques. FDI flows into OECD countries are generally driven by high skilled works. FDI inflows to OECD countries increase GINI coefficients and widen income gaps due to their skill-intensive nature. A high level of education should be encouraged as indicated by its negative relationship with the GINI index.
Income inequality；Foreign Direct Investment (FDI)；Organization for Economic Cooperation (OECD)
Teng, L., and Q. Bi. The Effects of FDI Inflows on Income Inequality: Evidence from OECD Countries[J]. Research on Financial Management, 2021, 7(02): 1-21.