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The Impact of Chinese FDI on Employment Generation in the Building and Construction Sector of Ghana

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  • Kwasi Boakye – Gyasi

    (University of Electronic Science and Technology of China, China)

  • Yao Li

    (University of Electronic Science and Technology of China, China)

Abstract

One of the major concerns of governments in Africa in general and Ghana in particular is unemployment and underemployment. Most developing countries especially African countries compete to attract foreign direct investment (FDI) into their economies with the desire of improving employment level and securing a sustainable development leading to economic growth. In view of this, the creation of jobs for the unemployed and technology transfer through Chinese investments has become complementary since Chinese FDI can be an important source for employment, economic growth and transformation processes. This study focuses on the contribution of China’s FDI on employment generation in the building and construction sector of Ghana. By using a robust regression model, the results show that, Chinese FDI flows on employment through direct effects on building and construction sector of Ghana have positive and significance on employment growth. This means that, Chinese FDI contributes to an efficient workforce which benefits an economy from high productivity and leads to growth in individual household incomes.

Suggested Citation

  • Kwasi Boakye – Gyasi & Yao Li, 2015. "The Impact of Chinese FDI on Employment Generation in the Building and Construction Sector of Ghana," Eurasian Journal of Social Sciences, Eurasian Publications, vol. 3(2), pages 1-15.
  • Handle: RePEc:ejn:ejssjr:v:3:y:2015:i:2:p:1-15
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    References listed on IDEAS

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    Cited by:

    1. Hu, Dengfeng & You, Kefei & Esiyok, Bulent, 2021. "Foreign direct investment among developing markets and its technological impact on host: Evidence from spatial analysis of Chinese investment in Africa," Technological Forecasting and Social Change, Elsevier, vol. 166(C).

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