Herzer, Dierk; Nunnenkamp, Peter - 2011
This paper examines the relationship between foreign direct investment (FDI) and income inequality for a sample of ten … variables, slope heterogeneity, and endogenous regressors, we find that: (1) FDI has a positive short-run effect on income … inequality in Europe, (2) the long-run effect of FDI on inequality, however, is negative on average, (3) long-run causality runs …