Foreign Direct Investment and Income Inequality in Latin America. Final report.
The main objective of the research was to understand the relationship between inward FDI and income inequality in Latin American countries. Does FDI lead to a narrowing of income inequality as would be expected on the basis of traditional trade models, or not, and do the effects differ by country? A second objective was to examine the role of policy affecting FDI in shaping the relationship between FDI and income inequality in Latin America. Do different FDI policies result in different effects of FDI on income inequality? Can and should FDI policy be used to target income inequality? This final report outlines the project's background and objectives, methodology, findings and dissemination of results.