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The Determinants of Employment of Affiliates of US Multinational Enterprises in Africa
Author(s) -
Asiedu Elizabeth
Publication year - 2004
Publication title -
development policy review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.671
H-Index - 61
eISSN - 1467-7679
pISSN - 0950-6764
DOI - 10.1111/j.1467-7679.2004.00255.x
Subject(s) - multinational corporation , openness to experience , productivity , business , natural resource , panel data , foreign direct investment , labour economics , resource (disambiguation) , population , international trade , economics , economic growth , political science , psychology , social psychology , computer network , demography , finance , sociology , computer science , law , econometrics , macroeconomics
Employment of foreign affiliates of multinational enterprises has been shown to promote growth by boosting wages, increasing the transfer of technology and enhancing productivity in host countries. Yet, the factors affecting such multinational employment in Africa have not been studied. Using panel data, this article indicates that – in contrast to natural resource availability – good infrastructure, higher income, openness to trade and an educated labour force have a significant positive impact on employment. In order to realise the employment benefits of FDI, therefore, sub‐Saharan Africa needs to attract investments in non‐natural resource industries, and host countries need to improve their infrastructure and educate their population.