DOĞRUDAN YABANCI YATIRIMLAR, İSTİHDAM VE GELİR EŞİTSİZLİĞİ İLİŞKİSİ: GELİŞMİŞ ÜLKELER ÖRNEĞİ
THE RELATIONSHIP BETWEEN FOREIGN DIRECT INVESTMENTS, EMPLOYMENT AND INCOME INEQUALITY: THE CASE OF DEVELOPED COUNTRIES

Summary/Abstract: Income inequality is one of the most important issues of today's economies. The reasons of income inequality are discussed in the literature in two groups as traditional and new causes. Foreign direct investments which take part in the new reasons affect the income inequality depending on the economic structure of countries and its sectoral structure. Unlike similar studies, impact of the foreign direct investment on income inequality through employment has been assessed in this study. Besides, instead of limited numbers of variables which effect the income inequality in the analyses, a model is developed with many variables after detailed literature review. The main hypothesis of the study conducted on the base sectors is stated as follows: Foreign direct investment has a reducing impact on income inequality in labor-intensive sectors and has an increasing impact on income inequality in technology-intensive sectors. Panel data analysis is performed by using the data of developed countries within the period of 1999-2011. According to the results of the analysis, the basic hypothesis is verified only for the service sector in the selected countries. The basic hypothesis is not verified because high income group probably takes a greater part of the income in the primary sector whereas in the manufacturing sector wages are under the average in many countries.

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