This paper provides a detailed survey of the literature on the impact of foreign direct investment (FDI) on poverty reduction, outlining the theoretical and empirical relationship between these variables. Although a number of studies have been done on the impact of FDI on poverty reduction, the majority of these studies have focused on the indirect impact of FDI on poverty reduction. The bulk of the literature reviewed supports the positive effects of foreign direct investment on poverty reduction, although a few studies have also found foreign direct investment to have an adverse or insignificant effect on poverty reduction. This study differs fundamentally from previous studies in that it focuses on the direct impact of FDI on poverty reduction, giving a detailed review of the nature of this relationship.
Ali M., Nishat M. and Anwar T. (2010), Do foreign inflows benefit Pakistan poor?, ʻThe Pakistan Development Reviewʼ, no. 48 (4).
Bharadwaj A. (2014), Reviving the globalisation and poverty debate: Effects of real and financial integration on the developing world, ʻAdvances in Economics and Businessʼ no. 2(1).
Borensztein E., De Gregorio J. and Lee J.W. (1998), How does foreign direct investment affect economic growth?, ʻJournal of International Economicsʼ, no. 45.
Calvo C.C. and Hernandez M.A. (2006), Foreign direct investment and poverty in Latin America, Leverhulme Centre for Research on Globalisation and Economic Policy, University of Nottingham.
Chang H. (2003), Trade and Industrial Policy Issues, [in:] Ha Joon (eds) Rethinking Development Economics. London, Anthem Press.
De Mello L.R. Jr, (1999), Foreign direct investment-led growth: Evidence from time series and panel data, ʻOxford Economic Papersʼ, no. 51.
Farole T. and Winkler D. (2012), Foreign Firm Characteristics, Absorption Capacity and The Institutional Framework: The Role of Mediating Factors For Foreign Direct Investment Spillovers in Low and Middle Income Countries. ʻPolicy Research Working Paperʼ 6265. World Bank, Washington, DC.
Fowowe B. and Shuaibu M.I. (2014), Is foreign direct investment good for the poor? New evidence from African Countries. ʻEco Change Restructʼ, no. 47.
Gohou G. and Soumare I. (2012), Does foreign direct investment reduce poverty in Africa and are there regional differences, ʻWorld Development,ʼ no. 40(1).
Gorg H. and Greenaway D. (2004), Much ado about nothing? Do domestic firms really benefit from foreign direct investment? ʻThe World Bank Research Observerʼ, no. 19(2).
Huang C., Teng K. and Tsai P. (2010), Inward and outward foreign direct investment and poverty reduction: East Asia versus Latin America, ʻReview of World Economicsʼ, no. 146 (4).
Hung T.T. (1999), Impact of Foreign Direct Investment on Poverty Reduction in Vietnam, IDS Program, GRIPS.
Israel A.O. (2014), Impact of foreign direct investment on poverty reduction in Nigeria, ʻJournal of Economics and Sustainable Developmentʼ, no. 5(20).
Jalilian H. and Weiss J. (2002), Foreign direct investment and poverty in the ASEAN region, ʻASEAN Economic Bulletinʼ, no. 19(3).
Kemeny T. (2010), Does foreign direct investment drive technological upgrading?, ʻWorld Developmentʼ, no. 38 (11).
Klein M., Aaron C. and Hadjimichael B. (2001), Foreign Direct Investment and Poverty Reduction. Policy Research Working Paper 2613, World Bank.
Liu X., Wang C. and Wei Y. (2009), Do local manufacturing firms benefit from transactional linkages with multinational enterprises in China?, ʻJournal International Business Studiesʼ, no. 40 (7).
Mahmood H. and Chaudhary A.R. (2012), A contribution of foreign direct investment in poverty reduction in Pakistan, ʻMiddle East Journal of Scientific Researchʼ no. 12(2).
Meyer K.E. and Sinani E. (2009), When and where does foreign direct investment generate positive spillover? A meta-analysis, ʻJournal of International Business Studiesʼ, no. 40 (7).
Meyer K.E. (2004), Perspectives on Multinational enterprises in emerging economies, ʻJournal of International Business Studiesʼ, no. 35(4).
Ogunniyi M.B. and Igberi C.O. (2014), The impact of foreign direct investment on poverty reduction in Nigeria, ʻJournal of Economics and Sustainable Development,ʼ no. 5(14).
Reiter S.L. and Steensma H.K. (2010), Human development and foreign direct investment in developing countries: the influence of foreign direct investment policy and corruption, ʻWorld Development,ʼ no. 38 (12).
Shamim A., Azeem P. and Naqvi M.A. (2014), Impact of foreign direct investment on poverty reduction in Pakistan, ʻInternational Journal of Academic Research in Business and Social Sciencesʼ, no 4(10).
Soumare I. (2015), Does Foreign Direct Investment Improve Welfare in North Africa? Africa Development Bank.
Sumner A. (2005), Is foreign direct investment good for the poor? A review and stocktake, ʻDevelopment in Practiceʼ, no. 15 ( 3/4).
Tsai P. and Huang C. (2007), Openness, growth and poverty: The case of Taiwan, World Development, no. 35(11).
Ucal M.S. (2014), Panel data analysis of foreign direct investment and poverty from the perspective of developing countries, ʻSocial and Behavioral Scienceʼ, no. 109.
United Nations 2015, Millennium Development Goals Report, United Nations.
Uttama N.P., (2015), Foreign Direct Investment and Poverty Reduction Nexus in South East Asia, [in:] Silber J. Poverty Reduction Policies and Practices in Developing Asia.
Wang J. and Blomstrom M. (1992), Foreign direct investment and technology transfer: A simple model, European Economic Review, no. 36 (1).
Zaman K.. Khan M.M. and Ahmad M. (2012), The relationship between foreign direct investment and pro-poor growth policies in Pakistan: The new interface, ʻEconomic Modellingʼ no. 29.