Contribution of foreign direct investment to job creation and skills development in selected multi-national companies in Kenya
Date
2014
Authors
Mwangi, Roy
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
The purpose of this study was to determine the contribution of Foreign Direct
Investment (FDI) to skills development and job creation in selected multi-national
companies in Kenya. The study further investigated the challenges faced in promoting
FDI. The study was carried out in Multinational Companies guided by the United
Nations Conference for Trade and Development investment guide report 2012 in Nairobi
County using both inferential and descriptive survey research design approaches to
achieve its objectives. To establish whether there is a significant relationship between
FDI and job creation, correlation analysis was done for macro-economic data on FDI
inflows against the data on the number of jobs created in the economy of Kenya since
1980. This was further supported by a descriptive survey at the micro economic level to
get the specific information from the Multi-national companies within the scope of
study. According to the findings, and contrary to the internalization theory, the study
concludes that there is a significant relationship between FDI and job creation and that
Multi Nationals operating in Kenya contribute to skills development and job creation.
The study also highlights that more needs to be done by the Kenya government through
policy improvement and review to foster and retain FDI from the Multi-Nationals.
Description
Submitted in partial fulfillment of the requirements for the Degree of Master of Commerce
Keywords
Investment, Foreign direct investment, Job creation, skills development, Multi-national companies, Kenya