74 lines
3.9 KiB
YAML
74 lines
3.9 KiB
YAML
cite: Xu2021
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author: Xu, C., Han, M., Dossou, T. A. M., & Bekun, F. V.
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year: 2021
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title: "Trade openness, FDI, and income inequality: Evidence from Sub-Saharan Africa"
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publisher: African Development Review
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uri: https://doi.org/10.1111/1467-8268.12511
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pubtype: article
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discipline: development
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country: Angola; Benin; Botswana; Burkina Faso; Burundi; Cabo‐Verde; Cameroon; Central African Republic; Chad; Comoros; Congo; D.R. of the Congo; Ethiopia; Gabon; Ghana; Guinea; Guinea Bissau; Côte d'Ivoire; Kenya; Lesotho; Liberia; Madagascar; Malawi; Mali; Mauritania; Mozambique; Namibia; Niger; Nigeria; Rwanda; Senegal; Seychelles; Sierra Leone; South Africa; Tanzania; Togo; Uganda; Zambia
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period: 2000-2015
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maxlength:
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targeting: implicit
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group: workers
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data: UNDP income equality; UN Conference on Trade and Veleopment FDI; World Bank WDI; World Bank World Governance Indicators
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design: quasi-experimental
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method: generalized method of moments
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sample: 38
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unit: country
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representativeness: national, census
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causal: 0 # 0 correlation / 1 causal
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theory:
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limitations: contains a variety of institutional-structural context within region
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observation:
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- intervention: trade liberalization (FDI)
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institutional: 0
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structural: 1
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agency: 0
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inequality: income
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type: 0 # 0 vertical / 1 horizontal
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indicator: 1 # 0 absolute / 1 relative
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measures: Gini coeff
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findings: increased income equality through FDI (p < .1)
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channels: primarily goes to agriculture which can employ low-skilled labour
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direction: -1 # -1 neg / 0 none / 1 pos
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significance: 1 # 0 nsg / 1 msg / 2 sg
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- intervention: trade liberalization
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institutional: 0
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structural: 1
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agency: 0
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inequality: income
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type: 0 # 0 vertical / 1 horizontal
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indicator: 1 # 0 absolute / 1 relative
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measures: Gini coeff
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findings: significantly decreased income equality through trade liberalization; equally for political stability, corruption, rule of law increase
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channels: higher import than export, creating jobs in other countries
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direction: 1 # -1 neg / 0 none / 1 pos
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significance: 2 # 0 nsg / 1 msg / 2 sg
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- intervention: education
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institutional: 1
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structural: 1
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agency: 0
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inequality: income
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type: 0 # 0 vertical / 1 horizontal
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indicator: 1 # 0 absolute / 1 relative
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measures: Gini coeff
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findings: education significantly decreases income equality in the region
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channels: potentially inequal access to education through exclusion (e.g. spatial/gender/financial); differentiated quality of education
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direction: 1 # -1 neg / 0 none / 1 pos
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significance: 2 # 0 nsg / 1 msg / 2 sg
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notes:
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annotation: |
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A study on the effects of trade liberalization and FDI on income inequality in 38 countries in the Sub-Saharan region.
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It finds that increased FDI is negatively correlated with income inequality measured through the Gini coefficient, while trade liberalization is positively correlated with income inequality ---
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as are corruption, political stability, rule of law and education, which contradicts a variety of previous studies.
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The authors suggest this may be due to the difference in sample and variables used, and the periods under study.
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They suggest that FDI may primarily go to the agricultural sector which can employ low-skilled labour and thereby reduce inequalities,
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while trade openness in fact creates jobs in other countries through higher import than export rates.
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They do not provide clear channels through which education positively correlates with inequality, though some possibilities are an unequal access to education (through excluding factors such as those based on spatial, gender or financial inequalities), as well as a differentiated quality of education.
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Limitations of the study are the region-wide level of analysis which may obscure context-dependent mechanisms within the different institutional-structural contexts of the countries and potential hidden unobservables which may bias the results.
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