Trade Openness, FDI and Income Inequality: New Empirical Evidence from Nigeria
JAŠOVÁ, Emilie. Trade Openness, FDI and Income Inequality: New Empirical Evidence from Nigeria. 2022. |
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Basic information | |
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Original name | Trade Openness, FDI and Income Inequality: New Empirical Evidence from Nigeria |
Name in Czech | Otevřenost obchodu, přímé zahraniční investice a nerovnost příjmů: Nové empirické důkazy z Nigérie |
Name (in English) | Trade Openness, FDI and Income Inequality: New Empirical Evidence from Nigeria |
Authors | JAŠOVÁ, Emilie. |
Edition | 2022. |
Other information | |
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Type of outcome | Review |
Confidentiality degree | is not subject to a state or trade secret |
Organization unit | University of Finance and Administration |
Keywords (in Czech) | otevřenost obchodu, příjmová nerovnost, ARDL, Nigérie |
Keywords in English | trade openness, income inequality, ARDL, Nigeria |
Tags | International impact, Reviewed |
Changed by | Changed by: Mgr. Tereza Denišová, DiS., učo 12202. Changed: 16/5/2022 10:40. |
Abstract |
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A huge number of empirical literature has carried investigation on trade openness- income inequality nexus globally. However, there are areas of knowledge gap on the part of the impacts of FDI inflows on inequality to the Nigerian economy. As a result of this knowledge gap and growing concern for variations in methodologies and scope which makes the debate on nexus between trade openness, FDI and income inequality not beyond controversy. Hence, this study examines the nexus between trade openness, FDI and income inequality in Nigeria between 1981 and 2019 using ARDL methodology. Our findings show that shows that trade openness exerts a negative effect on income inequality in the short-run. This implies that rising trade openness leads to decline in inequality. Equally, the study finds that FDI is negatively related to income inequality. The findings are in tandem the theoretical prediction of Stolper-Samuelson's theorem in case of Asia that trade openness and FDI inflow impact income inequality. The findings on government expenditure also exerts a positive effect on inequality. Given that proxies for institutional and macroeconomic determinants demonstrate a diverse variety of indications and effects, this study suggests a policy stimulus aimed at enhancing economic and social structures while also stimulating FDI influx potential in order to raise household incomes. |
Abstract (in Czech) |
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Velké množství empirické literatury provedlo celosvětový průzkum vztahu otevřenosti obchodu a příjmové nerovnosti. Existují však oblasti znalostní mezery, pokud jde o dopady přílivu přímých zahraničních investic na nerovnost do nigerijské ekonomiky. V důsledku této mezery ve znalostech a rostoucího zájmu o variace v metodologii a oblasti působnosti je debata o spojitosti mezi otevřeností obchodu, přímými zahraničními investicemi a příjmovou nerovností nepřekonatelná. Tato studie proto zkoumá souvislost mezi otevřeností obchodu, přímými zahraničními investicemi a příjmovou nerovností v Nigérii v letech 1981 až 2019 pomocí metodologie ARDL. Naše zjištění ukazují, že otevřenost obchodu má v krátkodobém horizontu negativní vliv na příjmovou nerovnost. To znamená, že rostoucí otevřenost obchodu vede k poklesu nerovnosti. Stejně tak studie zjistila, že PZI negativně souvisí s příjmovou nerovností. Zjištění jsou v tandemu s teoretickou predikcí Stolper-Samuelsonovy věty v případě Asie, že otevřenost obchodu a příliv FDI ovlivňují příjmovou nerovnost. Pozitivní vliv na nerovnost mají i zjištění o vládních výdajích. Vzhledem k tomu, že zástupné hodnoty pro institucionální a makroekonomické determinanty vykazují rozmanitou škálu indikací a účinků, tato studie navrhuje politický stimul zaměřený na posílení ekonomických a sociálních struktur a zároveň na stimulaci potenciálu přílivu přímých zahraničních investic s cílem zvýšit příjmy domácností. |
Abstract (in English) |
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A huge number of empirical literature has carried investigation on trade openness- income inequality nexus globally. However, there are areas of knowledge gap on the part of the impacts of FDI inflows on inequality to the Nigerian economy. As a result of this knowledge gap and growing concern for variations in methodologies and scope which makes the debate on nexus between trade openness, FDI and income inequality not beyond controversy. Hence, this study examines the nexus between trade openness, FDI and income inequality in Nigeria between 1981 and 2019 using ARDL methodology. Our findings show that shows that trade openness exerts a negative effect on income inequality in the short-run. This implies that rising trade openness leads to decline in inequality. Equally, the study finds that FDI is negatively related to income inequality. The findings are in tandem the theoretical prediction of Stolper-Samuelson's theorem in case of Asia that trade openness and FDI inflow impact income inequality. The findings on government expenditure also exerts a positive effect on inequality. Given that proxies for institutional and macroeconomic determinants demonstrate a diverse variety of indications and effects, this study suggests a policy stimulus aimed at enhancing economic and social structures while also stimulating FDI influx potential in order to raise household incomes. |
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