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Analysis of the Relationship Between Foreign Direct Investment

   

Added on  2020-11-12

15 Pages4592 Words81 Views
Analysis of the relationship between foreigndirect investment and Income inequality inIreland from 1990 to 2017
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TABLE OF CONTENTSRESEARCH TOPIC:.......................................................................................................................1CHAPTER 1: INTRODUCTION....................................................................................................1Background..................................................................................................................................1Aim and Objectives.....................................................................................................................2Research Question.......................................................................................................................2Hypothesis...................................................................................................................................2Rationale......................................................................................................................................2Significance.................................................................................................................................3LITERATURE REVIEW................................................................................................................3Introduction to Literature.............................................................................................................3Theme 1: Analysing the impacts of FDI on the income in equality in Ireland between 1990-2017.............................................................................................................................................3Theme 2: Analysing the relationship between FDI and income inequality.................................6Theme 3: Analysing the factors which leads to income inequality in Ireland.............................7Conclusion...................................................................................................................................8RESEARCH METHODOLOGY....................................................................................................8Limitations...................................................................................................................................9Advantages..................................................................................................................................9Disadvantages............................................................................................................................10REFERENCES..............................................................................................................................11
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RESEARCH TOPIC:The relationship between foreign direct investment and income inequality in Ireland from1990 to 2017CHAPTER 1: INTRODUCTIONBackgroundGrowth of an economy is dependent on factors such as inflation, foreign direct investmentbalanced gross domestic production as well as adequate governmental policies. Ireland havebeen denoted as a developing nation and the economic growth of the nation is comparativelyeffective in compare with the other developing countries in world. Influences of foreign directinvestment will be adequate in leading the country to manage its economic issues and bringstability for economic development, managing the per capita income as well as smoothgoverning on the operational practices (P. Doh, 2018). The policies, laws, regulation andstandards have been set by the government which are in relation with protecting the nation fromouter crisis. This research will provide better understanding about foreign direct investment andincome inequality in Ireland during the period 1990 to 2017. There are huge difference in incomeof the individuals in the Ireland due to inflow of FDI in the country. Income, inequality occurswhen there are difference in the level of wages of the individuals having the same piece of workwhich leads to high income inequality (Irma, Indah and Nugroho, 2018). This affect theeconomy of the county to the large extent so it is required to identify this factors. FDI inflowincreases the competition in the economy due to which leads to pushing down of domesticcapitalistThus, easing the pay of investment for the growth of small scale industries in Ireland willbe effective in balancing firm’s operational efficiencies. While many states try to attract moreFDI as possible, other focus just on the FDI that can lead to increases in the living standards andwell-being of the host country (Bermejo Carbonell and Werner, 2018). These countries, whichare looking for this sort of capital investment, want to establish advantageous economic, legaland business environment for possible investors (Brada and et.al., 2019). Supporting andencouraging FDI can make more jobs and have other positive effects for national economies(Nogueira and Afonso, 2018). Therefore, many governments established investment promotion1
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agencies (IPA) specially to promote FDI. It is forecasted that 81 percent of the states around theearth have found IPA to be more successful in attracting FDI.Aim and ObjectivesAim: “To analyse the relationship between foreign direct investment and incomeinequality in Ireland from 1990 to 2017”Objectives:To analyse the impacts of FDI on the income in equality in Ireland between 1990-2017.To analyse the relationship between FDI and income inequalityTo analyse the factors which leads to income inequality in IrelandResearch QuestionWhat is the impact of foreign direct investment (FDI) on domestic income inequality forIreland over the period 1990-2017?HypothesisQUESTION 1: Does foreign direct investment affects wage inequality?Null hypothesis (H0): There is no mean relationship between foreign direct investmentand wage inequality.Alternative Hypothesis (H1): There is a mean relationship between foreign directinvestment and wage inequalityRationaleThe reason behind selecting this topic is for making adequate ascertainment and analysisover the issues which are being faced by the national government in managing the FDI andbalancing the rate of GDP in the nation (Janský and Palanský, 2018). This research will analyseimpacts of changes incurred in the operational practice and policy designing with a motive tomake necessary increment in the national economy (Carlos and Afonso, 2018). There have beeninfluences of various factors which in turn will be liable in relation with managing theoperational efficiencies that will be adequate in the operational ascertainment (Daly, 2019). Thereason behind choosing this topic is that there has been various previous research on FDI andincome inequality separately but there is less research on both of them in Ireland (Rivera and2
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