The impact of FDI on income inequality in Egypt

Rezk, Hebatalla, Amer, Goma, Fathi, Nahla, and Sun, Sizhong (2022) The impact of FDI on income inequality in Egypt. Economic Change and Restructuring, 55 (3). pp. 2011-2030.

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Abstract

This study examines the impact of inward foreign direct investment (FDI) on income inequality in Egypt over the period from 1975 to 2017. We find that a one per cent increase in FDI inflows (as a percentage of gross fixed capital formation) results in 0. 0188 reduction of the Gini coefficient. The finding is robust to different specifications of the empirical model and potential endogeneity of FDI inflows. The negative impact of FDI inflows suggests that Egyptian policymakers shall continue and strengthen the open-door policy, which has the added benefit of improving income inequality.

Item ID: 74778
Item Type: Article (Research - C1)
ISSN: 1574-0277
Keywords: Egypt, FDI, Globalisation, Income inequality
Copyright Information: This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/.
Date Deposited: 01 Nov 2022 04:45
FoR Codes: 38 ECONOMICS > 3801 Applied economics > 380110 International economics @ 60%
38 ECONOMICS > 3801 Applied economics > 380111 Labour economics @ 40%
SEO Codes: 15 ECONOMIC FRAMEWORK > 1502 Macroeconomics > 150206 Income distribution @ 100%
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