IDEAS home Printed from https://ideas.repec.org/a/wly/jintdv/v27y2015i7p1243-1266.html
   My bibliography  Save this article

Foreign Direct Investment, Employment and Wages in Sub‐Saharan Africa

Author

Listed:
  • Nicola D. Coniglio
  • Francesco Prota
  • Adnan Seric

Abstract

Job creation is one of the main challenges for developing countries. The aim of this paper is to analyse the relation between foreign ownership and employment using an original firm‐level dataset that covers 19 sub‐Saharan African countries. Our results show that although foreign firms are generally larger than local ones, the employment they generate is relatively more unskilled labour intensive compared with that generated by domestic firms. We discover substantial differences between foreign investors from the north and the south, in terms of both skill intensity and wage premiums. We also find that, ceteris paribus, Chinese firms employ more workers (mostly blue‐collar workers) and pay lower wages for both skilled and unskilled workers compared with both domestic firms and other foreign investors. Copyright © 2014 John Wiley & Sons, Ltd.

Suggested Citation

  • Nicola D. Coniglio & Francesco Prota & Adnan Seric, 2015. "Foreign Direct Investment, Employment and Wages in Sub‐Saharan Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 27(7), pages 1243-1266, October.
    • Handle: RePEc:wly:jintdv:v:27:y:2015:i:7:p:1243-1266
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sanjaya Kumar Malik, 2019. "Foreign Direct Investment and Employment in Indian Manufacturing Industries," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(4), pages 621-637, December.
    2. Thomas Habanabakize & Daniel Francois Meyer & Judit Oláh, 2019. "The Impact of Productivity, Investment and Real Wages on Employment Absorption Rate in South Africa," Social Sciences, MDPI, vol. 8(12), pages 1-15, December.
    3. Benfratello, Luigi & D’Ambrosio, Anna & Sangrigoli, Alida, 2023. "Foreign Direct Investments in Africa: Are Chinese investors different?," Journal of Business Research, Elsevier, vol. 155(PA).
    4. Boker Poumie & Dounya Matsop Claude, 2021. "Does Foreign Capital Really Matter for Employment? Evidence from Agricultural Dominance African Countries," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 9(2), pages 88-104, June.
    5. Sotiris Blanas & Adnan Seric & Christian Viegelahn, 2019. "Job Quality, FDI and Institutions in Sub-Saharan Africa: Evidence from Firm-Level Data," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(5), pages 1287-1317, December.
    6. Ibrahim Mike Okumu & Edward Bbaale & Madina Mwagale Guloba, 2019. "Innovation and employment growth: evidence from manufacturing firms in Africa," Journal of Innovation and Entrepreneurship, Springer, vol. 8(1), pages 1-27, December.
    7. Blanas, Sotiris. & Seric, Adnan. & Viegelahn, Christian,, 2017. "Jobs, FDI and institutions in Sub-Saharan Africa evidence from firm-level data," ILO Working Papers 994987491902676, International Labour Organization.
    8. Chung-Khain Wye & Elya Nabila Abdul Bahri, 2021. "How does employment respond to minimum wage adjustment in China?," The Economic and Labour Relations Review, , vol. 32(1), pages 90-114, March.
    9. Moran, Theodore H. & Görg, Holger & Seric, Adnan, 2016. "Quality FDI and Supply-Chains in Manufacturing: Overcoming Obstacles and Supporting Development," KCG Policy Papers 1, Kiel Centre for Globalization (KCG).
    10. Abdulmohsen Alfalih, Abdullah & Bel Hadj, Tarek, 2021. "Asymmetric effects of foreign direct investment on employment in an oil producing country: Do human capital, institutions and oil rents matter?," Resources Policy, Elsevier, vol. 70(C).
    11. Nicola D. Coniglio & Rezart Hoxhaj & Adnan Seric, 2017. "The demand for foreign workers by foreign firms: evidence from Africa," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(2), pages 353-384, May.
    12. Oya, Carlos & Schaefer, Florian, 2023. "Do Chinese firms in Africa pay lower wages? A comparative analysis of manufacturing and construction firms in Angola and Ethiopia," World Development, Elsevier, vol. 168(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:jintdv:v:27:y:2015:i:7:p:1243-1266. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/journal/5102/home .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.