Hemmer, Hans-RimbertHans-RimbertHemmerKrüger, RalfRalfKrügerSeith, JenniferJenniferSeith2022-09-062005-07-272022-09-0620051430-6298http://nbn-resolving.de/urn:nbn:de:hebis:26-opus-22919https://jlupub.ub.uni-giessen.de/handle/jlupub/7401http://dx.doi.org/10.22029/jlupub-6851This paper discusses the impact of FDI on income inequality. - The theoretical ways in which FDI might influence income inequality between countries as well as within a given country are discussed, with special attention also given to employment generation effects. - Revisiting previous research we show that significant effects of FDI are hard to find in more recent work, with older studies showing mixed results. - Re-estimating the prominent study of Tsai (1995) with newer data we augment it by allowing for FDI-influences on inequality by region, income level, and export focus. - We find no overall impact of FDI on inequality. Also region and income differentiated estimations show no country group-specific impacts of FDI. Only in the export focusdifferentiated estimations we find some evidence of an inequality increasing impact of FDI in countries primarily exporting primary goods (without fuel). - FDI thus do not have significant implications for income distribution in general.deIn Copyrightddc:330