This study aimed to examine the impact of foreign direct investment on income inequality in ASEAN in a decade from 2006 to 2015 by using panel data analysis. By applying the panel data analyses with the fixed-effect model and random effect model. Gini index refers to income inequality. The results show that education reduces income gaps. On the other hand, openness and GDP per capita exacerbate the income distribution in ASEAN. However, inward FDI per GDP has an insignificant effect on income inequality of the host countries.
DOES FOREIGN DIRECT INVESTMENT AFFECT INCOME INEQUALITY IN ASEAN?