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A comparative analysis on globalization, foreign direct investment and income distribution

Year 2019, Issue: 53, 1 - 22, 30.06.2019
https://doi.org/10.18070/erciyesiibd.412702

Abstract

Foreign direct investment plays an important role as one of the most important tools of globalization in the process of globalization, which has been taking place rapidly since the last 30-40 years. According to the classical economic theory, the positive effects of globalization and income distribution of foreign direct investments are mentioned. It has been seen in the literature that different results have emerged in studies conducted in this respect. While some studies show positive effects, some studies show negative effects. There are also studies that have reached the conclusion that globalization and foreign direct investment have no impact on income inequality.

The main objective of the study is to demonstrate whether globalization and foreign direct investment in 16 developing and 16 developed countries negatively affect income inequality using annual data between 1980 and 2014 by means of dynamic panel data analysis. The analysis results show that globalization increases income inequality. When analyzed with different models, it is seen that economic globalization and FDI reduces the income inequality and social and political globalization is the reason for increasing income inequality. According to these results, the economic policy to be applied by the countries in order to benefit from globalization and to protect them from adverse effects gains importance.

References

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  • HERZER, Dierk, Philipp HÜHNE and Peter NUNNENKAMP; (2014), “FDI and Income Inequality—Evidence from Latin American Economies”, Review of Development Economics, 18(4), pp.778-793.
  • IM, Kyung So, M. Hasem PESARAN and Yongcheol SHIN; (2003), “Testing for Unit Roots in Heterogeneous Panels”, Journal of econometrics, 115(1), pp.53-74.
  • JENSEN, Nathan M. and Guillermo ROSAS; (2007), “Foreign Direct Investment and Income Inequality in Mexico,1990-2000”, International Organization, 61(3), p.1-37.
  • KARABIYIK, Can ve İlkay DİLBER; (2016), “Gelir Eşitsizliği ve Doğrudan Yabancı Sermaye Yatırımları İlişkisi: Panel Veri Analizi”, Journal of Yaşar University, 11(44), ss.316-325.
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Küreselleşme, doğrudan yabancı yatırımlar ve gelir dağılımı üzerine karşılaştırmalı bir analiz

Year 2019, Issue: 53, 1 - 22, 30.06.2019
https://doi.org/10.18070/erciyesiibd.412702

Abstract



Son 30-40 yıl öncesinden itibaren büyük bir hızla gerçekleşmekte olan küreselleşme sürecinde, küreselleşmenin en önemli araçlarından biri olarak doğrudan yabancı yatırımlar önemli bir rol oynamaktadır. Klasik iktisat teorisine göre küreselleşme ve doğrudan yabancı yatırımların gelir dağılımı üzerinde olumlu etkileri söz konusudur. Literatürde bu konuda yapılan çalışmalarda farklı sonuçlar ortaya çıktığı görülmüştür. Bazı çalışmalarda olumlu etkiler ortaya çıkarken, bazı çalışmalarda olumsuz etkiler ortaya çıkmıştır. Bunun yanı sıra küreselleşme ve doğrudan yabancı yatırımların gelir eşitsizliği üzerinde etkisi olmadığı sonucuna ulaşan çalışmalar da mevcuttur.

Çalışmanın temel amacı, 1980-2014 yılları arası yıllık veriler kullanılarak 16 gelişmekte olan ve 16 gelişmiş ülkede küreselleşme ve doğrudan yabancı yatırımların gelir eşitsizliğini olumsuz etkileyip etkilemediğini dinamik panel veri analizleriyle ortaya koymaktır. Elde edilen analiz sonuçları, küreselleşmenin gelir eşitsizliğini artırdığını ortaya koymaktadır. Farklı modellerle analiz yapıldığında ekonomik küreselleşme ile doğrudan yabancı yatırımların gelir eşitsizliğini azalttığı, sosyal ve politik küreselleşmenin, gelir eşitsizliğinin artma sebebi olduğu görülmüştür. Bu sonuçlara göre ülkelerin küreselleşmeden yarar sağlamak ve olumsuz etkilerinden korunmak için uygulayacakları iktisat politikaları önem kazanmaktadır.

References

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  • ALİ, Abdel Gadir; (2003), “Globalization and Inequality in the Arab Region”, Arab Planning Institute Information Center Working Paper, 03/07, pp.1-37.APERGIS, Nicholas and James E. PAYNE; (2009), “Energy Consumption and Economic Growth: Evidence From the Commonwealth of Independent States”, Energy Economics, 31, pp.641-647.
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  • BUSSMANN, Margit, Indra de SOYSA and John R. ONEAL; (2002), “The Effect of Foreign Direct Investments on Economic Growth and Income Inequality”, ZEF Discussion Paper, Development Policy, 53, pp.1-41.
  • CHINTRAKARN, Pandej , Dierk HERZER and Peter NUNNENKAMP; (2010), “FDI and Income Inequality: Evidence from a Panel of US States”, Kiel Institute for the World Economy, Working Paper, 1579, pp.1-30.
  • DEĞER, M. Kemal; (2006), “Ticari Liberalizasyon ve Gelir Dağılımı: Gelişmekte Olan Ülkeler Üzerine Bir Analiz”, Ankara Üniversitesi Siyasal Bilimler Fakültesi Dergisi, 61(2), ss.63-87.
  • DOĞAN, Ebül Muhsin, Ali SHAHINPOUR ve Khadijeh AGHAPOUR; (2013), “İran’da Gelir Dağılımı Üzerine Doğrudan Yabancı Yatırımın Etkisi”, Atatürk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 17(3), ss.377-388.
  • DREHER, Axel and Noel GASTON; (2008), “Has Globalization Increased Inequality?”, Review of International Economics, 16(3), pp.516-536.EZCURRA, Robert and Andres Rodriguez POSE; (2013), “Does Economic Globalization Affect Regional Inequality? A Cross-Counrtry Analysis”, World Development, 52, pp.92-103.
  • FIGINI, Paolo and Holger GÖRG; (2006), “Does Foreign Direct Investment Affect Wage Inequality? An Empirical Investigation”, IZA Discussion Paper, 2336, pp.1-20.
  • FRANCO, C Chiara and Elisa GERUSSI; (2013), “Trade, Foreign Direct Investment (FDI) and Income Inequality: Empirical Evidence from Transition Countries”, The Journal of International Trade&Economic Development, 22 (8), pp.1131-1160.
  • GOPINATH, Munisamy and W Weiyan CHEN; (2003), “Foreign Direct Investment and Wages: a Cross-country Analysis”, The Journal of International Trade & Economic Development, 12(3), pp.285-309.
  • HAMEED, Abid and Anila NAZIR; (2009), Economic Globalization and Its Impact on Poverty and Inequality: Evidence from Pakistan. Internet Address: http://ecosecretariat.org/ftproot/Publications/Journal/1/Article_TDB.pdf, Date of Access: 13.10.2016.
  • HAYALOĞLU Pınar, Cemalettin KALAYCI ve Seyfettin ARTAN; (2005), “Küreselleşmenin Ekonomik Büyümeye Etkileri: Panel Veri Analizi”, International Conference on Economics, 18-20 Ekim, Antalya.
  • BALKIR, Z. Gönül; (2005), “İşverenin Yönetim Hakkının Kullanılmasında Etik Sınırlar”, 2. Siyasette ve Yönetimde Etik Sempozyumu, 18–19 Kasım, Sakarya: Sakarya Üniversitesi, ss. 197–209, İnternet Adresi: http://www.etiksempozyumu.sakarya.edu.tr/etik/2.2/Balkir.pdf, Erişim Tarihi: 25.10.2007.
  • BATMAZ, Nihal ve Halil TUNCA; (2005), Doğrudan Yabancı Sermaye Yatırımları ve Türkiye (1923-2003), İstanbul: Beta Yayınları.
  • HERZER, Dierk and Peter NUNNENKAMP; (2011), “FDI and Income Inequality: Evidence from Europe”, Kiel Institute fort he World Economy Working Paper, 1675, pp.1-21.
  • HERZER, Dierk, Philipp HÜHNE and Peter NUNNENKAMP; (2014), “FDI and Income Inequality—Evidence from Latin American Economies”, Review of Development Economics, 18(4), pp.778-793.
  • IM, Kyung So, M. Hasem PESARAN and Yongcheol SHIN; (2003), “Testing for Unit Roots in Heterogeneous Panels”, Journal of econometrics, 115(1), pp.53-74.
  • JENSEN, Nathan M. and Guillermo ROSAS; (2007), “Foreign Direct Investment and Income Inequality in Mexico,1990-2000”, International Organization, 61(3), p.1-37.
  • KARABIYIK, Can ve İlkay DİLBER; (2016), “Gelir Eşitsizliği ve Doğrudan Yabancı Sermaye Yatırımları İlişkisi: Panel Veri Analizi”, Journal of Yaşar University, 11(44), ss.316-325.
  • KOF, Swiss Economic Institute; (2014), “2014 KOF Index of Globalization”, Internet Adress: http://globalization.kof.ethz.ch/media/filer_public/2014/04/15/method_2014.pdf, Date of Access: 10.03.2014.
  • KOF, Swiss Federal Institute of Technology; (2007a), “Business Cycle Research Unit”, retrieved on August 24, 2007, Internet Adress: http://globalization.kof.ethz.ch/, Date of Access: 10.10.2016.
  • KOF, Swiss Federal Institute of Technology; (2007b), “Business Cycle Research Unit”, retrieved on January 12, 2008, Internet Adress: http://globalization.kof.ethz.ch/static/pdf/method_2007.pdf, Date of Access: 10.10.2016.
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  • LEVIN, Andrew, Chien Fu LIN and Chia Shang CHU; (2002), “Unit Root Tests in Panel Data: Asymptotic and Finite-Sample Properties”, Journal of Econometrics, 108(1), pp.1-24.
  • LIN, Shu-Chin, Dong-Hyeon KIM and Yi-Chen WU; (2013), “Foreign Direct Investment and Income Inequality: Human Capital Matters”, Journal of Regional Science, 53 (5), pp.874-896.
  • MADDALA, Gangadharrao Soundalyarao and Shaowen WU; (1999), “A Comparative Study of Unit Root Tests with Panel Data and A New Simple Test”, Oxford Bulletin of Economics and Statistics, 61(S1), pp.631-652.
  • MARK Nelson C. and Donggyu SUL; (2003), “Cointegration and Vector Estimation by Panel DOLS and Long-Run Money Demand”, Oxford Bulletin of Economics and Statistics, 65, pp.655-680.
  • MAH, Jai S; (2002), “The Impact of Globalization on Income Distribution: The Korean Experience”. Applied Economics Letters, 9(15), pp.1007–1009.
  • MATTHEW C. Mahutga, Nina BANDELJ; (2008), “Foreign Investment and Income Inequality: The Natural Experiment of Central and Eastern Europe”. International Journal of Comparative Sociology, 49(6), pp.429-454.
  • MILANOVIC, Branko; (2002), “Income Convergence During The Disintegration Of The World Economy 1919-39”, World Bank Policy Research Working Paper, 2941, pp.1-40.
  • MILANOVIC, Branko; (2003), “Can We Discern the Effect of Globalization on Income Distribution? Evidence from Household Surveys”, World Bank Policy Research Working Paper, 2876, pp.1-35.
  • NAZLIOĞLU, Şaban; (2010), “Makro İktisat Politikalarının Tarım Sektörü Üzerindeki Etkileri: Gelişmiş ve Gelişmekte Olan Ülkeler İçin Bir Karşılaştırma”, Erciyes Üniversitesi Sosyal Bilimler Enstitüsü İktisat Anabilim Dalı. Yayımlanmamış Doktora Tezi. Kayseri.
  • ÖRNEK, İbrahim and Adem Yavuz ELVEREN; (2010), “Trade Liberalization and Income Inequality in Turkey: An Empirical Analysis”, Çukurova Üniversitesi Sosyal Bilimler Dergisi, 19(2), pp.62-70.
  • PEDRONI, Peter; (1999), “Critical values for cointegration tests in heterogeneous panels with multiple regressors”, Oxford Bulletin of Economics and Statistics, 61(1), pp.653-670.
  • PEDRONI, Peter; (2000), “Fully Modified OLS for Heterogeneous Cointegrated Panels”, Advances in Econometrics, 15, pp.93-130.
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Details

Primary Language Turkish
Journal Section Makaleler
Authors

Derya Yücel

Halil Altıntaş

Publication Date June 30, 2019
Acceptance Date December 28, 2018
Published in Issue Year 2019 Issue: 53

Cite

APA Yücel, D., & Altıntaş, H. (2019). Küreselleşme, doğrudan yabancı yatırımlar ve gelir dağılımı üzerine karşılaştırmalı bir analiz. Erciyes Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi(53), 1-22. https://doi.org/10.18070/erciyesiibd.412702

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