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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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
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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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