THE IMPACT OF FOREIGN DIRECT INVESTMENT ON INCOMES INEQUALITY: CASE STUDY WESTERN BALKANS

KADRIJI, Linda and ISMAILI, Raman and FETAI, Besnik (2023) THE IMPACT OF FOREIGN DIRECT INVESTMENT ON INCOMES INEQUALITY: CASE STUDY WESTERN BALKANS. ECONOMIC VISION International Scientific Journal in Economics, Finance, Business, Marketing, Management and Tourism, 10 (19-20). pp. 139-146. ISSN 2545-4544

Text Economic Vision, Vol.10, No.19-20-139-146.pdf Download (811kB)

Abstract

The objective of this paper is to investigate empirically the impact of Foreign Direct Investment (FDI-henceforth) on income inequality for the period 2007 to 2021. Therefore, the research question is: Does FDI has an impact on income distribution? To answer this research question, we established the hypothesis that FDI has a negative impact on income inequality. For this purpose, we employ GMM (Generalized Method of Moments) model in order to check validity of hypothesis. Our findings shows that FDI has a significant effect on income inequality, that is measured by Gini-index. The effect of FDI is negative on income inequality, and statistically is significant. Therefore, the findings with GMM estimator conform the hypothesis that FDI has a positive effect on reducing inequality

Item Type:	Article
Uncontrolled Keywords:	FDI, Income Inequality, GMM
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HC Economic History and Conditions
Divisions:	Faculty of Law, Arts and Social Sciences > School of Management
Depositing User:	Unnamed user with email zshi@unite.edu.mk
Date Deposited:	10 Nov 2023 16:14
Last Modified:	10 Nov 2023 16:14
URI:	http://eprints.unite.edu.mk/id/eprint/1583

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