Publication

This paper provides a computable general equilibrium analysis of the medium to long-run impact of foreign direct investment (FDI) inflows on poverty and income distribution in Bolivia. The authors find that FDI inflows add to Bolivia's investment ratio, enhance economic growth, and reduce poverty. They, however, point out that income distribution typically becomes more unequal and that income disparities between urban and rural areas increase. They finally give some policy recommendations for the Bolivian government in order to promote growth-enhancing and poverty-alleviating effects of FDI.