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FDI and Inequality in Latin American Middle-Income Economies
Unformatted Document Text:  17 formal employment generation in the service sector. Because of the high informality, also welfare politics in this sector should be expected to be less effective. The paper shows that sectors are significant in explaining the relationship between FDI and inequality, and has two important consequences: first, it contributes to the unfinished debate about the effect of FDI on inequality by opening a new front for analysis and discussion. Second, results are relevant for the evaluation of alternative development routes in countries with high inequality and economically driven by export oriented sectors, in a context of deindustrialization and a growing service economy.

Authors: Bogliaccini, Juan.
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17
formal employment generation in the service sector. Because of the high informality, also
welfare politics in this sector should be expected to be less effective.
The paper shows that sectors are significant in explaining the relationship between FDI
and inequality, and has two important consequences: first, it contributes to the unfinished
debate about the effect of FDI on inequality by opening a new front for analysis and
discussion. Second, results are relevant for the evaluation of alternative development
routes in countries with high inequality and economically driven by export oriented
sectors, in a context of deindustrialization and a growing service economy.


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