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CEPAL Review No. 118, April 2016
  • E-ISSN: 16840348

Abstract

This paper analyses the relationship between foreign direct investment (FDI) and income inequality in Latin America. In particular, it estimates the effect of FDI from a sectoral perspective, identifying three major sectors: the primary sector, manufacturing industry and services. Using a data panel for 13 economies in the 1980-2009 period, empirical evidence was found for a positive effect of FDI on income inequality in the service and manufacturing sectors.

Related Subject(s): Economic and Social Development

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