Foreign direct investment and job creation: empirical verification on data from the Democratic Republic of Congo from 2000 to 2016
Journal Title: International Journal of Social Science Humanity & Management Research - Year 2022, Vol 1, Issue 06
Abstract
Using an error correction model, the ultimate objective of this paper was to investigate the influences exerted by foreign direct investment as well as those of other variables to which the theoretical literature gives some credit on the employment rate in DR Congo. The paper concludes that there is no or negligible relationship between foreign investment and unemployment during the period under review, regardless of the period of analysis. More concretely, the coefficient associated with FDI is positive in the dynamic relationship, but negative in the static relationship. In both cases, this coefficient is statistically not different from 0. It goes without saying that these investments contribute to job creation in the long term, but at a very marginal rate. In the short run, there is a substitution of FDI for domestic investment and thus an increase in the unemployment rate. Public capital expenditure and the accelerator effect, on the other hand, do not play much of a role in increasing the volume of employment in DR Congo. Moreover, the Phillips relationship is sufficiently robust in both the short and long run.
Authors and Affiliations
Fataki Donatien Alexandre, Faray Makonga Fabrice
Keywords
Related Articles
- EP ID EP712613
- DOI -
- Views 44
- Downloads 0
The Impact of Work Engagement on the Agility of the Organization's Workforce X
Digital transformation is increasingly necessary in the public sector and is a government strategy imperative. ASNs working in Organization X need to be agile to adapt to the changing environment and the current digital...
Mother's Knowledge, Diet and Nutritional Status in Stunted Toddlers (Literature Review)
Childhood is an important age for physical growth. The growth of children under the age of five is so fast that they need to eat foods that are in line with their needs. The purpose of this study was to examine maternal...
Teacher’s Role in Developing Elementary School’s Student’s Literacy
The purpose of this study was to determine the role of elementary school teachers in Manggarai in developing literacy culture. This research used observation and interview techniques. The respondents were elementary scho...
https://ijsshmr.com/v2i6/15.php
This study attempted to find out the significant difference between the basic mathematical skills of grade 5 learners before and after the implementation of innovative board game and the social learning after the impleme...
Teachers’ Perceived English Proficiency and Self-Efficacy of English Teachers in the Academic World
This research used descriptive correlational design to find the significant relationship between perceived English proficiency and self-efficacy of English teachers. The respondents of the study were 142 elementary teach...