Foreign direct investment - income growth for all?

dc.contributor.authorKrüger, Ralf
dc.contributor.authorSeith, Jennifer
dc.date.accessioned2022-09-06T07:34:30Z
dc.date.available2005-07-27T09:49:34Z
dc.date.available2022-09-06T07:34:30Z
dc.date.issued2005
dc.description.abstractThe United Nations declared halving the number of poor people by 2015 as the first of their eight Millennium Development Goals. Foreign direct investment (FDI) is often seen as one instrument towards this goal because of its ability to stimulate economic growth trickling down to the poor. Whereas many studies deal with those growth effects, little attention is paid to possible direct poverty reducing effects. Therefore, we first examine different theoretical direct and indirect ways through which FDI can affect the income of the poor. Wage effects and possible job-creating effects are considered. We find that they depend on the existing human capital and its distribution in society. Following Dollar and Kraay [2000] and Jalilian and Weiss [2001] this hypothesis is confirmed empirically with the use of cross-country regressions for a set of developing countries. In summary, this paper indicates that in developing countries with existing and equally distributed human capital FDI can help fighting poverty whereas in countries with little or very unequally distributed human capital FDI can raise poverty.en
dc.identifier.issn1430-6298
dc.identifier.urihttp://nbn-resolving.de/urn:nbn:de:hebis:26-opus-22906
dc.identifier.urihttps://jlupub.ub.uni-giessen.de//handle/jlupub/7400
dc.identifier.urihttp://dx.doi.org/10.22029/jlupub-6850
dc.language.isoende_DE
dc.relation.ispartofseriesEntwicklungsökonomische Diskussionsbeiträge; 33 / 2005
dc.rightsIn Copyright*
dc.rights.urihttp://rightsstatements.org/page/InC/1.0/*
dc.subject.ddcddc:330de_DE
dc.titleForeign direct investment - income growth for all?en
dc.typeworkingPaperde_DE
local.affiliationFB 02 - Wirtschaftswissenschaftende_DE
local.opus.fachgebietWirtschaftswissenschaftende_DE
local.opus.id2290
local.opus.instituteProfessur für Volkswirtschaftslehre und Entwicklungsländerforschungde_DE

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