Foreign investment and income inequality: The natural experiment of Central and Eastern Europe

International Journal of Comparative Sociology

Volumn 49, Issue 6, 2008, Pages 429-454

  Mahutga, Matthew C ^a   Bandelj, Nina ^b  

^a UNIVERSITY OF CALIFORNIA   (United States)

^b UNIVERSITY OF CALIFORNIA   (United States)

Author keywords

Central and Eastern Europe; Development; Foreign direct investment; Inequality; Post socialist transition

Indexed keywords

COMPARATIVE STUDY; EXPERIMENTAL STUDY; FOREIGN DIRECT INVESTMENT; HETEROGENEITY; REGRESSION ANALYSIS; WAGE GAP;

CENTRAL EUROPE; EASTERN EUROPE; EURASIA; EUROPE;

EID: 56549128990     PISSN: 00207152     EISSN: 17452554     Source Type: Journal    
DOI: 10.1177/0020715208097788     Document Type: Article

References (73)

1. Ahluwalia, M. (1976) 'Income Distribution and Development: Some Stylized Facts', American Economic Review 66: 128-35.
2. Aitken, B., Harrison, A. and Lipsey, R.E. (1996) 'Wages and Foreign Ownership: A Comparative Study of Mexico, Venezuela, and the United States', Journal of International Economics 40(3-4): 345-71.
3. Alderson, A. and Nielsen, F. (1999) 'Inequality, Development and Dependence: A Reconsideration', American Sociological Review 64: 606-31.
4. Alderson, A. and Nielsen, F. (2002) 'Globalization and the Great U-Turn: Income Inequality Trends in 16 OECD Countries', American Journal of Sociology 107: 1244-99.
5. Amemiya, T. (1985) Advanced Econometrics. Cambridge, MA: Harvard University Press.
6. Bair, J. (2005) 'Global Capitalism and Commodity Chains: Looking Back, Going Forward', Competition and Change 9(2): 153-80.
7. Bandelj, N. (2008) From Communists to Foreign Capitalists: The Social Foundations of Foreign Direct Investment in Postsocialist Europe. Princeton, NJ: Princeton University Press.
8. Beck, N. and Katz, J.N. (1995) '"What to Do (and Not to Do) With Time Series Cross Section Data', American Political Science Review 89(3): 634-47.
9. Beer, L. and Boswell, T. (2002) 'The Resilience of Dependency Effects in Explaining Income Inequality in the Global Economy: A Cross-National Analysis, 1975-1995', Journal of World-Systems Research 8(1): 30-59.
10. Bockman, J. and Eyal, G. (2002) 'Eastern Europe as a Laboratory for Economic Knowledge: The Transnational Roots of Neoliberalism', American Journal of Sociology 108(2): 310-52.
11. Bollen, K. and Jackman, R. (1985) 'Political Democracy and the Size Distribution of Income', American Sociological Review 50: 438-57.
12. Bornschier, V. and Ballmer-Cao, T.-H. (1979) 'Income Inequality: A Cross National Study of the Relationships Between MNC-Penetration, Dimensions of the Power Structure and Income Distribution', American Sociological Review 44: 438-506.
13. Bornschier, V. and Chase-Dunn, C. (1985) Transnational Corporations and Underdevelopment. New York: Praeger.
14. Bornschier, V., Chase-Dunn, C. and Rubinson, R. (1978) 'Cross-national Evidence of the Effects of Foreign Investment and Aid on Economic Growth and Inequality. A Survey of Findings and a Reanalysis', American Journal of Sociology 84: 651-83.
15. Boswell, T. and Chase-Dunn, C. (2000) The Spiral of Capitalism and Socialism: Toward Global Democracy. London: Lynne Rienner.
16. Czaban, L. and Henderson, J. (2003) 'Commodity Chains, Foreign Investment and Labor Issues in Eastern Europe', Global Networks 3(1): 171-96.
17. DeMartino, G. (1998) 'Foreign Direct Investment', in M. Honey and T. Barry (eds) Foreign Policy in Focus, available online at: [http://www.fpif.org/briefs/vol3/v3n14fdi.html], accessed 24 April 2005.
18. de Soysa, I. and Oneal, J.R. (1999) 'Boon or Bane? Reassessing the Productivity of Foreign Direct Investment', American Sociological Review 64(5): 766-82.
19. Dixon, W. and Boswell, T. (1996) 'Dependency, Disarticulation, and Denominator Effects: Another Look at Foreign Capital Penetration', American Journal of Sociology 102: 543-62.
20. Emigh, R.J. and Szelényi, I. (eds) (2001) Poverty, Ethnicity and Gender in Eastern Europe During the Market Transition. Westport, CT: Greenwood Press.
21. Evans, P. and Timberlake, M. (1980) 'Dependence, Inequality, and the Growth of the Tertiary: A Comparative Analysis of Less Developed Countries', American Sociological Review 45: 531-52.
22. Feenstra, R.C. (1998) 'Integration of Trade and Disintegration of Production in the Global Economy', Journal of Economic Perspectives 12(4): 31-50.
23. Feenstra, R.C. and Hanson, G.H. (1997) 'Foreign Direct Investment and Relative Wages: Evidence from Mexico's Maquiladoras', Journal of International Economics 42(3-4): 371-93.
24. Firebaugh, G. (1992) 'Growth Effects of Foreign and Domestic Investment', American Journal of Sociology 98(1): 105-30.
25. Frank, A.G. (1967) Capitalism and Development in Latin America. New York: Monthly Review Press.
26. Galbraith, J.K. and Kum, H. (2005) 'Estimating the Inequality of Household Incomes: Toward a Dense and Consistent Global Data Set', Review of Income and Wealth 51(1): 115-43.
27. Galtung, J. (1971) 'A Structural Theory of Imperialism', Journal of Peace Research 2: 81-117.
28. Ganzeboom, H.B.G. and Nieuwbeerta, P. (1999) 'Access to Education in Six Eastern European Countries between 1940 and 1985: Results of a Cross-national Survey', Communist and Post-communist Studies 32(4): 339-57.
29. Gerber, T.P. and Hout, M. (1995) 'Educational Stratification in Russia during the Soviet Period', American Journal of Sociology 101: 1574-81.
30. Gottschalk, P. and Smeeding, T.M. (1997) 'Cross National Comparisons of Earnings and Income Inequality', Journal of Economic Literature 35: 633-87.
31. Gustafsson, B. and Johansson, M. (1999) 'In Search of the Smoking Guns: What Makes Income Inequality Vary Over Time in Different Countries?', American Sociological Review 64: 585-605.
32. Halaby, C. (2004) 'Panel Models in Sociological Research: Theory into Practice', Annual Review of Sociology 30: 507-44.
33. Heyns, B. (2005) 'Emerging Inequalities in Central and Eastern Europe', Annual Review of Sociology 31: 163-97.
34. Hirschman, A.O. [1945] (1980) National Power and the Structure of Foreign Trade. Berkeley: University of California Press.
35. ILO (1998) Labor and Social Issues Relating to Export Processing Zones. Geneva: ILO.
36. Jorgenson, A.K. (2006a) 'Global Warming and the Neglected Greenhouse Gas: A Cross-National Study of Methane Emissions Intensity, 1995', Social Forces 84: 1777-96.
37. Jorgenson, A.K. (2006b) 'The Transnational Organization of Production and Environmental Degradation: A Cross-National Study of the Effects of Foreign Capital Penetration on Organic Water Pollution Intensity, 1980-1995', Social Science Quarterly 87: 711-30.
38. Jorgenson, A.K. and Kick, E. (eds) (2006) Globalization and the Environment. Leiden, The Netherlands: Brill Academic Press.
39. Kentor, J. (1998) 'The Long-Term Effects of Foreign Investment Dependence on Economic Growth 1940-1990', American Journal of Sociology 103: 1024-46.
40. Kentor, J. (2001) 'The Long Term Effects of Globalization on Income Inequality, Population Growth and Economic Development', Social Problems 48(4): 435-55.
41. Kentor, J. and Grimes, P. (2006) 'Foreign Investment Dependence and the Environment: A Global Perspective', in A.K. Jorgenson and E. Kick (eds) Globalization and the Environment, pp. 61-78. Leiden: Brill Academic Press.
42. King, L. (2001) The Basic Features of Postcommunist Capitalism in Eastern Europe: Firms in Hungary, The Czech Republic and Slovakia. Westport, CT: Praeger.
43. Kornai, J. (1992) The Socialist System: The Political Economy of Communism. Princeton, NJ: Princeton University Press.
44. Korzeniewicz, R. and Moran, T. (2005) 'Theorizing the Relationship between Inequality and Economic Growth', Theory and Society 34(3): 277-316.
45. Kreidl, M. (2004) 'Politics and Secondary School Tracking in Socialist Czechoslovakia, 1948-1989', European Sociological Review 20(2): 123-39.
46. Kuznets, S. (1953) Share of Upper Income Groups in Income and Savings. New York: National Bureau of Economic Research.
47. Kuznets, S. (1955) 'Economic Growth and Income Inequality', American Economic Review 45: 1-28.
48. Lecaillon, J., Paukert, F., Morrisson, C. and Germidis, D. (1984) Income Distribution and Economic Development: Analytical Survey. Geneva: International Labor Office.
49. Lee, C.-S. (2005) 'Income Inequality, Democracy, and Public Sector Size', American Sociological Review 70(1): 158-77.
50. Lipsey, R.E. and Sjoholm, F. (2001) 'Foreign Direct Investment and Wages in Indonesian Manufacturing', NBER Working paper no. 8299, National Bureau of Economic Research, Cambridge, MA.
51. Mahutga, M.C. (2006) 'The Persistence of Structural Inequality? A Network Analysis of International Trade, 1965-2000', Social Forces 84(4): 1963-89.
52. Marx, K. (1875 [1970]) 'Critique of the Gotha Programme', in Marx/Engels Selected Works, Volume Three, pp. 13-30. Moscow: Progress Publishers.
53. McMichael, P. (1996) Development and Social Change: A Global Perspective. Thousand Oaks, CA: Pine Forge Press
54. McMillan, C. (1987) Multinationals from the Second World: Growth of Foreign Investment by Soviet and East European Enterprises. London: Macmillan Press.
55. Megginson,W. and Netter, J. (2001) 'From State to Market: A Survey of Empirical Studies on Privatization', Journal of Economic Literature 39(2): 321-89.
56. Milanovic, B. (1999) 'Explaining the Increase in Inequality during the Transition', Economics of Transition 7(2): 299-341.
57. Milanovic, B. (2005) Worlds Apart. Princeton, NJ: Princeton University Press.
58. Moran, T. (2002) Beyond Sweatshops: Foreign Direct Investment in Developing Countries. Washington, DC: Brookings Institution.
59. Morris, M. and Western, B. (1999) 'Inequality in Earnings at the Close of the Twentieth Century', Annual Review of Sociology 25: 623-57.
60. Nielsen, F. (1994) 'Income Inequality and Development: Dualism Revisited', American Sociological Review 59: 654-77.
61. Prais, S. and Winsten, C. (1954) 'Trend Estimation and Serial Correlation', Cowles Commission Discussion Paper No. 383, Chicago, IL.
62. Ranney, D. (1998) 'Investment Liberalization Agenda', in M. Honey and T. Barry (eds) Foreign Policy in Focus, vol. 3, no. 21, available online at: [http://www.fpif.org/briefs/vol3/v3n21trad.html], accessed 24 April 2005.
63. Rona-Tas, A. (1997) The Great Surprise of the Small Transformation. Ann Arbor: Michigan University Press.
64. Simpson, M. (1990) 'Political Rights and Income Inequality: A Cross-National Test', American Sociological Review 55: 682-93.
65. Smith, S.C., Cin, B.-C. and Vodopivec, M. (1997) 'Privatization Incidence, Ownership Forms, and Firm Performance: Evidence from Slovenia', Journal of Comparative Economics 25: 158-79.
66. Stack, S. (1980) 'The Political Economy of Income Inequality: A Comparative Analysis', Canadian Journal of Political Science 13: 273-86.
67. Szelényi, I. (1978) 'Social Inequalities in State Socialist Redistributive Economies', International Journal of Comparative Sociology 19: 63-87.
68. Tinbergen, J. (1975) Income Distribution: Analysis and Policies. Amsterdam: North Holland.
69. Tsai, P.-L. (1995) 'Foreign Direct Investment and Income Inequality: Further Evidence', World Development 23: 469-83.
70. Unctad (2006) 'World Investment Report: Search by Country/Economy', available online at: [http://www.unctad.org/Templates/Page.asp?intItemID= 3198&lang=1], accessed 20 March 2005.
71. van Tulder, R. and Ruigrok, W. (1998) 'European Cross-National Production Networks in the Auto Industry: Eastern Europe as the Low End of European Car Complex', BRIEWP Working Paper 121, Berkeley Roundtable on the International Economy, Berkeley, CA.
72. Williamson, G. (1991) Inequality, Poverty, and History. Cambridge, MA: Basil Blackwell.
73. Wooldridge, J.M. (2002) Econometric Analysis of Cross Section and Panel Data. Cambridge, MA: MIT Press.