Income distribution is one aspect which matters in order to have high-sustained economic growth.
Identifying and controlling influences to economic growth and income distribution are thus of essential importance to DCs. FDI has been considered one of such influences, though there is no clear-cut conclusion about FDI's implications so far. With regard to economic growth in DCs,FDI can have influence in terms of filling the resources gaps, transferring technology and management skills, accessing export markets, etc. However, it may have also negative impacts when it competes and crowds out domestic investment. The impact of FDI's on income distribution is so far also inconlusive on the basis of theoretical and empirical studies.