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• W3123710265 abstract "This paper examines the interactions between Foreign Direct Investment (FDI), inequality, and growth, both from an empirical and a theoretical point of view. Using a panel of 119 developing countries, we observe that FDI promotes both inequality and growth, and tends to reduce the share of agriculture to GDP in the recipient country. We then set up a growth model of a dual economy in which the traditional (agricultural) sector uses a diminishing returns technology, while FDI is the engine of growth in the modern (industrial) sector. The main predictions of the model are consistent with the stylized facts observed in the data." @default.
• W3123710265 created "2021-02-01" @default.
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• W3123710265 date "2007-12-01" @default.
• W3123710265 modified "2023-10-01" @default.
• W3123710265 title "Foreign Direct Investment, inequality, and growth" @default.
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• W3123710265 doi "https://doi.org/10.1016/j.jmacro.2006.02.004" @default.
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