Inward and Outward Foreign Direct Investment and Inequality: Evidence from a Group of Middle-Income Countries

2016 ◽  
Vol 16 (3) ◽  
pp. 511-538 ◽  
Author(s):  
Chao-Hsi Huang ◽  
Kai-Fang Teng ◽  
Pan-Long Tsai

Using panel data of a group of 39 middle-income countries over 1981–2006, this paper examines how globalization in general and inward and outward FDI in particular affects inequality. Depending on geographical region and economic system, each component of globalization affects inequality in three groups of countries in different ways: open to inward FDI tends to affect income distribution adversely in transition economies and Latin American countries, but marginally improves income distribution in countries of the reference group. In contrast, open to outward FDI is positively associated with inequality in the reference group whereas negatively associated with that of the other two groups of countries. Crucially, improvement in human capital appears to be the single most reliable way to reduce inequality.

2014 ◽  
Vol 14 (1) ◽  
pp. 1-9 ◽  
Author(s):  
Hem C. Basnet ◽  
Kamal P. Upadhyaya

Remittances are a major source of household income in many Asian, African, and Latin American countries. Households spend a significant portion of remittances on health and education. Given that human capital is one of the primary determinants of foreign direct investment (FDI) inflow, this study develops a model in which remittances are one of several determinants of the observed variation in FDI. The model is estimated using data from a group of 35 middle-income countries from Latin America, Asia–Pacific, and Africa. The estimated results ascribe no significance to remittances in explaining cross-country variation in FDI. However, geographically-disaggregated estimated results do establish a positive effect for African countries, no significant effect for Latin American countries, and a negative effect for the Asia–Pacific region.


2021 ◽  
pp. 001041402110243
Author(s):  
Irene Menéndez González

Standard theories in comparative political economy predict that labor market insiders oppose redistribution to poorer, often informal, labor market outsiders. In contrast, I argue that not all insiders oppose redistribution to outsiders. Extending recent work emphasizing the importance of economic insecurity for insiders, I argue that exposure to risk leads to greater polarization regarding preferences for non-contributory social policy between low- and high-skilled insiders. I test implications of this logic using a survey experiment from a nationally representative sample in Argentina and complement this with analysis of observational data for 16 Latin American countries. I find strong evidence of polarization regarding preferences over social protection among low- and high-skilled insiders. The experiment reveals that low (high)-skilled insiders primed about the risk of becoming outsiders become more supportive of transfers to outsiders (insiders). The article provides new micro-foundations for insider–outsider coalitions in support of social policy expansion in middle-income countries.


2018 ◽  
Author(s):  
Leonardo Clemente ◽  
Fred Lu ◽  
Mauricio Santillana

AbstractA real-time methodology for monitoring flu activity in middle income countries that is simultaneously accurate and generalizable has not yet been presented. We demonstrate here that a self-correcting machine learning method leveraging Internet-based search activity produces reliable and timely flu estimates in multiple Latin American countries.


2021 ◽  
Vol 13 (22) ◽  
pp. 12651
Author(s):  
Wilman-Santiago Ochoa-Moreno ◽  
Byron Alejandro Quito ◽  
Carlos Andrés Moreno-Hurtado

In this study we aim to test the effects of foreign direct investment (FDI) on carbon emissions (CO2) in 20 Latin American countries during the period of 1990–2018. Based on the atlas method of the World Bank, we divided the countries into three groups according to their real gross national income per capita: high-income, upper-middle-income and lower-middle-income countries. We used cointegration techniques and causality tests to evaluate the relationship between the variables. To assess the strength of the cointegration vector, we applied the dynamic ordinary least squares (DOLSs) model for individual countries and the dynamic panel ordinary least squares (PDOLSs) model for groups of countries. The results suggest that the entry of FDI into Latin American (LA) countries increases CO2 emissions, affecting the environmental quality. These findings disagree with the environmental Kuznets curve (EKC) hypothesis but, in contrast, they are in line with the pollution haven hypothesis (PHH). Moreover, we show evidence in long-term equilibrium relationship between FDI input and CO2 emissions, which is not the case for the short-term equilibrium. Some additional results suggest that FDI flows do not cause the CO2 emissions in LA countries. The empirical findings suggest policymakers to design policies to “the second-best theory”, targeting FDI flows to their economies to solve economic problems in the short term, but thereafter they may guarantee the reduction in environmental pollution, based on environmentally responsible FDI and stronger regulations. In other words, the transition from a pollution haven to the applicability of the environmental Kuznets curve (EKC). This study contributes with scarce empirical evidence for LA countries in this issue.


2019 ◽  
Vol 39 (2) ◽  
pp. 187-210 ◽  
Author(s):  
LUIZ CARLOS BRESSER-PEREIRA

ABSTRACT New developmentalism was a response to the inability of classical developmentalism and post-Keynesian macroeconomics in leading middle-income countries to resume growth. New developmentalism was born in the 2000s to explain why Latin American countries stopped growing in the 1980s, while East Asian countries continued to catch up. This paper compares new developmentalism with classical developmentalism, which didn’t have a macroeconomics, and with post-Keynesian economics, whose macroeconomics is not devoted to developing countries. And shows that to follow the East Asian example is not enough industrial policy, it is also necessary a macroeconomic policy that sets the five macroeconomic prices right, rejects the growth with foreign savings policy, and keeps the macroeconomic accounts balanced.


Mathematics ◽  
2021 ◽  
Vol 9 (3) ◽  
pp. 245
Author(s):  
Pablo Ponce ◽  
José Álvarez-García ◽  
Mary Cumbicus ◽  
María de la Cruz del Río-Rama

The aim of this research is to analyse the effect of income inequality on the homicide rate. The study is carried out in 18 Latin American countries for the period 2005–2018. The methodology used is the Generalized Least Squares (GLS) model and the data were obtained from World Development Indicators, the World Health Organization and the Inter-American Development Bank. Thus, the dependent variable is the homicide rate and the independent variable is income inequality. In addition, some control variables are included, such as: poverty, urban population rate, unemployment, schooling rate, spending on security and GDP per capita, which improve the consistency of the model. The results obtained through GLS model determine that inequality has a negative and significant effect on the homicide rate for high-income countries (HIC) and lower-middle-income countries (LMIC), whereas it is positive and significant for upper-middle-income countries (UMIC). On the other hand, the control variables show different results by group of countries. In the case of unemployment, it is not significant in any group of countries. Negative spatial dependence was found regarding spatial models such as: the spatial lag (SAR) and spatial error (SEM) method. In the spatial Durbin model (SDM), positive spatial dependence between the variables was corroborated. However, spatial auto-regressive moving average (SARMA) identified no spatial dependence. Under these results it is proposed: to improve productivity, education and improve the efficiency of security-oriented resources.


2019 ◽  
Vol 130 (4) ◽  
pp. 1065-1079 ◽  
Author(s):  
Michael C. Dewan ◽  
Abbas Rattani ◽  
Rania Mekary ◽  
Laurence J. Glancz ◽  
Ismaeel Yunusa ◽  
...  

OBJECTIVEHydrocephalus is one of the most common brain disorders, yet a reliable assessment of the global burden of disease is lacking. The authors sought a reliable estimate of the prevalence and annual incidence of hydrocephalus worldwide.METHODSThe authors performed a systematic literature review and meta-analysis to estimate the incidence of congenital hydrocephalus by WHO region and World Bank income level using the MEDLINE/PubMed and Cochrane Database of Systematic Reviews databases. A global estimate of pediatric hydrocephalus was obtained by adding acquired forms of childhood hydrocephalus to the baseline congenital figures using neural tube defect (NTD) registry data and known proportions of posthemorrhagic and postinfectious cases. Adult forms of hydrocephalus were also examined qualitatively.RESULTSSeventy-eight articles were included from the systematic review, representative of all WHO regions and each income level. The pooled incidence of congenital hydrocephalus was highest in Africa and Latin America (145 and 316 per 100,000 births, respectively) and lowest in the United States/Canada (68 per 100,000 births) (p for interaction < 0.1). The incidence was higher in low- and middle-income countries (123 per 100,000 births; 95% CI 98–152 births) than in high-income countries (79 per 100,000 births; 95% CI 68–90 births) (p for interaction < 0.01). While likely representing an underestimate, this model predicts that each year, nearly 400,000 new cases of pediatric hydrocephalus will develop worldwide. The greatest burden of disease falls on the African, Latin American, and Southeast Asian regions, accounting for three-quarters of the total volume of new cases. The high crude birth rate, greater proportion of patients with postinfectious etiology, and higher incidence of NTDs all contribute to a case volume in low- and middle-income countries that outweighs that in high-income countries by more than 20-fold. Global estimates of adult and other forms of acquired hydrocephalus are lacking.CONCLUSIONSFor the first time in a global model, the annual incidence of pediatric hydrocephalus is estimated. Low- and middle-income countries incur the greatest burden of disease, particularly those within the African and Latin American regions. Reliable incidence and burden figures for adult forms of hydrocephalus are absent in the literature and warrant specific investigation. A global effort to address hydrocephalus in regions with the greatest demand is imperative to reduce disease incidence, morbidity, mortality, and disparities of access to treatment.


2018 ◽  
Vol 40 (1) ◽  
pp. 3-24
Author(s):  
John C. Begeny

Scholarship in school psychology has continued to document the need and importance of contextually relevant intervention and prevention research, but this type of research remains relatively scarce. Also problematic, this type of research is even more limited in low- and middle-income countries (LMIC) compared to high-income countries. This situation within school psychology scholarship not only has negative implications for research and practice, it also limits internationalization within the discipline. The geographical context for the present study was in Costa Rica, currently a Latin American LMIC. Given the global importance of literacy, this article describes an experimental evaluation comparing two time- and resource-efficient reading interventions that differed only by instructional grouping: A one-on-one intervention, and an even more resource-efficient small-group intervention. Participants included third-graders experiencing significant reading difficulties. Analyses showed that all students benefitted from intervention, but some students responded somewhat more favorably to one intervention versus the other. Limitations, implications, and future research directions are discussed, particularly within the context of international school psychology and how professionals in the discipline can benefit from more intervention research in otherwise underrepresented global regions.


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