International Journal of Advances in Management and Economics (IJAME)

ISSN:2278-3369
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TitleInteraction between FDI, Poverty and Inequality: Analysis in Simultaneous Equations
AuthorSamia hmani
AbstractDeveloping countries have had, from the late 1980s, large imbalances in their balance of payments. These are characterized by a lack of domestic resources relative to their financing needs. Hence the recourse to foreign direct investment as an alternative source of funding. The present research aims to identify the determinants of foreign direct investment on reducing poverty and inequality in the MENA region during the period 1990-2014. The results of econometric estimates based on simultaneous equation analysis suggest that FDI reduces both poverty and inequality. Furthermore the Kuznets hypothesis has not been validated for all sample countries.
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