MNEs, FDI, inequality and growth

Purpose The relationship among foreign direct investment, multinationals, inequality and growth is a vexing one that has occupied considerable scholarly and practical attention for many decades. To date, international business scholars have not fully concerned themselves with this issue (Buckley, Do...

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Bibliographic Details
Published inMultinational business review Vol. 27; no. 3; pp. 217 - 220
Main Author Doh, Jonathan P
Format Journal Article
LanguageEnglish
Published Bingley Emerald Publishing Limited 16.09.2019
Emerald Group Publishing Limited
Subjects
Councils
Developing countries
Economic models
Foreign investment
Income distribution
Inequality
Informal economy
Kuznets, Simon Smith (1901-1985)
LDCs
Multinational corporations
Skilled workers
Skills
Social responsibility
Transition economies
Wage differential
Wages & salaries
Mexico
Thailand
Asia
Africa
Latin America
FDI
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Summary:Purpose The relationship among foreign direct investment, multinationals, inequality and growth is a vexing one that has occupied considerable scholarly and practical attention for many decades. To date, international business scholars have not fully concerned themselves with this issue (Buckley, Doh and Benischke, 2017, for an exception). This paper aims to briefly review this literature and report some of the insights of this work. The author draws from and integrates this literature, concluding that multinationals and the foreign investment that emanate from them have a generally positive impact on growth and a generally negative impact on income and wealth equality. The author then details some of the potential contributions MNEs can make to attenuate the negative relationship of foreign direct investment (FDI) on equality, concluding that governments and their policies are the primary vehicle for addressing wealth and income inequality. Design/methodology/approach This paper is an essay. Findings The relationship between inequality, growth and FDI is complex. On balance, FDI contributes to growth but may exacerbate inequality under some conditions. More research needs to be conducted, and policymakers need to carefully consider these nuanced relationships. Originality/value The paper provides review of the relationship of FDI, growth and inequality.
ISSN:1525-383X
2054-1686
DOI:10.1108/MBR-09-2018-0062