THE IMPACT OF FOREIGN DIRECT INVESTMENTS ON INCOME INEQUALITY IN CEE-11 AND WESTERN BALKAN COUNTRIES

Tijana Tubić Ćurčić, Nemanja Lojanica, Milena Jovanović Kranjec

DOI Number
https://doi.org/10.22190/TEME240315025T
First page
377
Last page
390

Abstract


Within Agenda 2030, the United Nations defined seventeen goals of sustainable development, whereby one of these goals is the decrease of inequality, and solving regional and global challenges. International investments (especially in the form of foreign direct investments) are stated as one of the important factors in the fight against economic inequality worldwide. The aim of the paper is the examination of the impact of foreign direct investments (FDI) on inequality in income distribution in CEE-11 and Western Balkan countries. A panel regression model was used as a methodological framework in the research, while the time framework was limited to the period between 1996 and 2020. It has been shown that FDI increase inequality in income distribution in two analysed periods: 1996-2020, and subperiod 1996-2008. Contrary to that, in subperiod 2009-2020, the income of FDI had a positive effect on income inequality, decreasing it. The research distribution is reflected in filling the gaps that exist in literature in this area, given that only a small number of papers examined the impact of FDI on income inequality in CEE-11, including the countries of the Western Balkans (WB).


Keywords

income inequality, foreign direct investments, CEE-11 + WB, panel regression.

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References


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DOI: https://doi.org/10.22190/TEME240315025T

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