Employment impact of foreign direct investment

Aniceth Mpanju


Many studies show that the inflow of FDI plays a significant role in generating employment opportunities in host countries. Over the past two decades, the East African Community (EAC) countries have attracted foreign direct investment from developed countries and FDI flows to the EAC region increased significantly. The objective of this study was to undertake an empirical analysis on creation of employment opportunities by FDI during 2004-2008 in Kenya, Rwanda, Tanzania, and Uganda. We used the Statistical Package for the Social Sciences (SPSS). The study shows that despite the clear enthusiasm of governments in these countries to attract FDI, its impact is not substantial in some of these countries. This book therefore, provides a new insight into the fields of international investments and economic development. The analysis should help shed some light into FDI and its impact on jobs creation in the EAC region, and should be especially useful to multinational corporations from developed countries and emerging economies. It is also likely to be of interest to policy makers and development practitioners in governments, non-governmental organizations and in the donor community.

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