Theoretical Holism in the Sociology of Development: Foreign Investment, Private Markets and Earnings Inequality during Postsocialism

What is it about?

This article examines income inequality in post-socialist countries. It shows that Foreign Direct Investment increased the pace of privatization in some countries, and thereby has an indirect effect on inequality.

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Why is it important?

The paper is important because it introduces a new mechanism by which foreign direct investment increased inequality in post-socialism (its impact on privatization), and solves the puzzle of disparate accounts about how private markets affect inequality during post-socialist transition.