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Cuadernos de Economía

Print version ISSN 0121-4772

Abstract

KRISTJANPOLLER RODRIGUEZ, Werner  and  SALAZAR ALBORNOZ, Rodolfo. Foreign direct investment and income inequality in Latin American countries: A panel data cointegration approach. Cuad. Econ. [online]. 2016, vol.35, n.68, pp.433-455. ISSN 0121-4772.  http://dx.doi.org/10.15446/cuad.econ.v35n68.44852.

This study shows empirical evidence on the relationship between inward foreign direct investment (FDI) and income inequality in Latin American countries by using panel cointegration techniques. The data was built with the measures of stock inward FDI and the income inequality index Estimated Household Income Inequality (EHII) for a 10-country panel. The empirical analysis finds long-term relationship and causality from FDI to Income Inequality but no short run causality can be concluded.

Keywords : Foreign direct investment; economic growth; income inequality; Latin-American economies.

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