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AStudyontheImpactofForeignDirectInvestmentonEmploymentinAfrica.
ABSTRACT
Thethesisintroducesthestudysbackground,outlinestheroleForeignDirectInvestment
(FDI)playsinotherpartsoftheworldandsomeAfricancountries,andstatesitssignificance.
Overtheyears,FDIindevelopingcountries,especiallyAfricancountries,hasincreased.
Multinationalenterprises(MNEs)seektomaximizetheirprofits,reducecosts,andexpand
intonewmarkets.ForAfricancountries,thispresentsanopportunitytoachieveeconomic
growthandcreatejobopportunitiesthatleadtoinclusivedevelopment.
Thisthesisexaminestheeffectsofforeigndirectinvestment(FDI)onemploymentin
Africa,focusingonthemanufacturingandservicesectors.Usingamixed-methodsapproach,
combiningeconometricanalysisandcasestudies,thisresearchinvestigateshowFDIcreates
newjobopportunities,improvesworkingconditions,andenhanceslaborproductivityin
Africa.ThefindingssuggestthatFDIpositivelyimpactsemploymentinthemanufacturing
sector,particularlyincountrieswithwell-developedinfrastructureandhumancapital.
However,intheservicesector,FDIisfoundtohaveamorelimitedimpactonemployment
and,insomecases,mayevenleadtojobdisplacement.Theresearchhighlightstheneedfor
AfricangovernmentstoimplementpoliciesthatmaximizetheemploymentbenefitsofFDI,
suchasinvestingineducationandtrainingprogramsandpromotinglinkagesbetweenforeign
firmsandlocalsuppliers.
Advancementsintechnology,suchasthewidespreaduseoftheinternetandmobile
phones,havetransformedhowpeoplework.Now,virtualmarkets,e-commerceactivities,and
websitessupportemploymentopportunities.Part-timeortemporaryemploymentisalso
becomingmorecommon.Forexample,inSouthAfrica,temporaryworkersaccountforabout
7percentofthelaborforce.
Todirectlyunderstandtheimpact
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