Inversión extranjera directa, crecimiento económico y desigualdad en América Latina

Abstract

This paper analyzes the relationship between foreign direct investment (FDI), economic growth and income inequality in Latin America. Using a data panel of 18 economies for the period 1980-2009, we estimate two equations that represent the relationship between FDI and economic growth, and income inequality, respectively. The main results obtained confirm the positive effects of FDI on economic growth, and show nonlinear significant effects on income inequality: while FDI leads to an increase in inequality, above some level of FDI (in% of GDP) it leads to greater equity.