CAN FOREIGN DIRECT INVESTMENT PROMOTE UNEMPLOYMENT?
DOI:
https://doi.org/10.55439/EIT/vol13_iss2/656Ключевые слова:
foreign direct investment (fdi)unemployment, economic sectors, labor market dynamics, workforce training, local businesses, automationАннотация
This study examines the relationship between Foreign Direct Investment (FDI) and unemployment rates across different countries and economic sectors. The findings indicate that while FDI generally contributes to job creation in manufacturing and service industries by fostering economic growth, it can also lead to increased unemployment in sectors such as agriculture and those with high levels of automation. Additionally, the entry of large foreign firms has, in some cases, resulted in the displacement of local businesses, leading to job losses. Given these mixed effects, it is crucial for policymakers to carefully assess the impact of FDI on labor market dynamics and implement strategies to maximize its benefits while mitigating potential risks. Governments should adopt targeted policies, including investment in education and workforce training to equip local labor with the necessary skills to adapt to evolving market conditions. Furthermore, financial and technical support should be provided to local businesses to enhance their competitiveness against foreign firms.
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