The Impacts of Inward and Outward FDI on Income Inequality in Turkey and Selected Turkic Republics

This study investigates the effects of inward and outward FDI on income inequality in Turkey, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Turkmenistan and Uzbekistan. The methodology covers panel cointegration techniques and balanced panel regressions. The conclusion is that inward and outward FDI have averagely a negative impact on income inequality in the long-run period but on the other hand the short-run effect of inward and outward FDI on income inequality is positive. The conclusion is robust to using different methods for estimation, sample selection and controlling for potential outliers.