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Studying the Effect of Education, Trade, and FDI on Income Inequality in Iran

Management and Administrative Sciences Review

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Title Studying the Effect of Education, Trade, and FDI on Income Inequality in Iran
 
Creator Rafsanjani, Hossein Khandani
Zeinolabedini, Mohammadreza
Mir, Mohammad
Far, Iman Moghadam
 
Subject —
Education, Income inequality, FDI, Openness, Trade
 
Description This paper examines the impact of foreign direct investment and Trade on income distribution in Iran. In previous studies, the effect of FDI on labor demand and capital spillovers on wage inequality in the Iran has been studied. However, extensive research has not been done exactly with this title. And just some articles titled review of the impact of trade liberalization and globalization on income distribution have been carried out by researchers. According to studies, one of these solutions is paying attention to inflows of foreign capital and workforce training and the effects that these items can have on the distribution of income. So, studying distributional effects of these currents can prove to be crucial. Especially, being aware of the distributional effects of these flows and foreign multinational companies can provide useful information about economic policy to deal with this. The period under study was from 1980 to 2012. The variables examined in this study are based on two models studied Figini and Franco which examines the effect of FDI on income inequality in some countries. The dependent variable of this study is Gini coefficient (a measure of income distribution) and independent variables include: FDI percentage of gross domestic production (GDP) and trade openness indicator, GDP per capita, inflation and education whose impact on income distribution is measured. This study, after assessing the models and implementing stability and detection tests, to avoid spurious regression, it was concluded that the rate of literacy through its effect on the population of skilled labor (educated) over the years have improved the distribution income. Trade Openness and Economic Growth (per capita GDP) have also exacerbated inequality. FDI has not significant and certain effects on income distribution. Kuznets hypothesis is also confirmed In Iran.
 
Publisher Academy of Business & Scientific Research
 
Contributor —
 
Date 2014-06-03
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://absronline.org/journals/index.php/masr/article/view/254
 
Source Management and Administrative Sciences Review; Vol 3, No 4 (2014): Special Issue (June); 733-745
2308-1368
2310-872X
 
Language eng
 
Relation http://absronline.org/journals/index.php/masr/article/view/254/275
 
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