Publication: Fdi and income inequality: Evidence from a panel of U.S. states
Issued Date
2012-07-01
Resource Type
ISSN
14657295
00952583
00952583
Other identifier(s)
2-s2.0-84863544804
Rights
Mahidol University
Rights Holder(s)
SCOPUS
Bibliographic Citation
Economic Inquiry. Vol.50, No.3 (2012), 788-801
Suggested Citation
Pandej Chintrakarn, Dierk Herzer, Peter Nunnenkamp Fdi and income inequality: Evidence from a panel of U.S. states. Economic Inquiry. Vol.50, No.3 (2012), 788-801. doi:10.1111/j.1465-7295.2011.00384.x Retrieved from: https://repository.li.mahidol.ac.th/handle/20.500.14594/13888
Research Projects
Organizational Units
Authors
Journal Issue
Thesis
Title
Fdi and income inequality: Evidence from a panel of U.S. states
Author(s)
Abstract
This study employs state-level panel data to explore the relationship between inward foreign direct investment (FDI) and income inequality in the United States. Using panel cointegration techniques that allow for cross-sectional heterogeneity and cross-sectional dependence, we find that, in the long run, FDI exerts a significant and robust negative effect on income inequality in the United States. This result for the United States as a whole does not imply that FDI narrows income gaps in each individual state. There is considerable heterogeneity in the long-run effects of FDI on income inequality across states, with some states (21 out of 48 cases) exhibiting a positive relationship between FDI in income inequality.(JEL F21, D31, C23) © 2011 Western Economic Association International.