1887

Asia-Pacific Sustainable Development Journal

The Asia-Pacific Sustainable Development Journal (APSDJ) aims to stimulate debate and enrich research in the formulation of policy in the Asia-Pacific region towards the fulfilment of the 2030 Agenda for Sustainable Development. The APSDJ seeks to provide a forum for the exchange of knowledge, experiences, ideas and analysis on issues concerning sustainable development across its economic, social and environmental dimensions. Published twice a year, the APSDJ is a rebranded journal of ESCAP that builds on the success of two earlier journals – the Asia-Pacific Development Journal (APDJ), being published since 1994, and the Asia-Pacific Population Journal (APPJ), in print since 1986. These journals are being merged in recognition of the interconnected and multidisciplinary nature of sustainable development.

English

The impact of foreign direct investment on income inequality: a panel Autogressive Distributed Lag approach for the Asia-Pacific Economic Cooperation developing economies

In the present paper, the effect of foreign direct investment (FDI) inflows on income inequality in Asia-Pacific Economic Cooperation (APEC) economies is investigated by using annual data for the period 1990–2015. The variables used are the Gini coefficient, FDI inflows, gross domestic product (GDP) per capita, trade openness and human capital. Also, panel Autoregressive Distributed Lag (ARDL) and panel heterogeneous non-causality tests are used in this study. The panel ARDL results suggest that, in the long run, FDI inflows decrease income inequality. This supports the argument that encouraging FDI inflows does not harm the distribution of income in APEC economies. The results also confirm that GDP per capita and trade openness help reduce income inequality while human capital widens income inequality. The results from this study suggest that APEC authorities could implement sound policies to attract more FDI, as evidence indicates that those inflows would narrow income inequality in APEC economies.

English

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