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Inward and outward foreign direct investment and poverty: East Asia vs. Latin America

Chao-Hsi Huang, Kai-Fang Teng and Pan-Long Tsai
Review of World Economics / Weltwirtschaftliches Archiv
Vol. 146, No. 4 (December 2010), pp. 763-779
Published by: Springer
Stable URL: http://www.jstor.org/stable/40985500
Page Count: 17
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Inward and outward foreign direct investment and poverty: East Asia vs. Latin America
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Abstract

Using panel data of 12 middle-income countries in East Asia as well as Latin America, this paper examines how openness in general and outward FDI in particular affects poverty. While economic growth and trade openness are found to be associated with lower poverty, both outward and inward FDI adversely affect the mean income of the poorest quintile of the population. The results hold in both regions, though the Latin American countries seem to be in a somewhat less favorable situation.

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