Nexus Between FDI, Economic Growth, Industrialization, and Employment Opportunities: Empirical Evidence from Pakistan

Khan, Irfan; Xue, Jian; Zaman, Shah; Mehmood, Zunair

doi:10.1007/s13132-022-01006-w

Cited by 28 publications

(27 citation statements)

References 59 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…One thing that needs to be mentioned is that the effect of FDI is significant in FDI (-2), indicating that the impact of FDI on youth unemployment requires time. The result from the lag of FDI supports the argument from the previous research that FDI can provide employment opportunities for young people (Hasan & Sasana, 2020;Khan et al, 2022).…”

Section: Resultssupporting

confidence: 85%

“…One of the significant factors in energizing economic growth is through promoting Foreign Direct Investment (FDI). This investment is vital as it can be used to supplement domestic savings, be a source to enhance the production capacity, and increase employment (Alkofahi, 2020;Khan et al, 2022). The attractiveness of FDI inflows is supported by crucial reasons, such as up-to-date information, skills and training, and technological development (Saleem et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Investigating the Role of Foreign Direct Investment on Youth Unemployment Rate in Indonesia

Tanaya

Suyanto

2023

Binus Business Review

View full text Add to dashboard Cite

Youth unemployment is a contemporary socioeconomic problem in many countries. Although it is a negative phenomenon, this number can be translated into different perspectives as it offers plenty of available job force not only in terms of age and easily adaptable workers but also opportunities for low-wage workers. Unfortunately, despite having a high Foreign Direct Investment (FDI) and economic growth rate, Indonesia still suffers from the youth unemployment problem. The research observed a relationship between youth unemployment and FDI in the case of Indonesia from 1991 until 2019. Because of a different situation faced by female and male workers, the research also extended the impact of FDI into gender-specific effects. Data were from World Development Indicator (WDI) in 1991-2019. The short- and long-run situations were analyzed using the Auto-Regressive-Distribution-Lag (ARDL) technique. Based on the findings, it is found that in the short run, FDI can increase youth unemployment in Indonesia. This situation can be due to the reallocation industry, which requires workers’ adjustment. However, in the long run, FDI significantly reduces youth unemployment. Therefore, it concludes that FDI in Indonesia can provide employment opportunities for young people. Next, FDI is found to have a negative and significant effect on female youth unemployment. Meanwhile, there is no significant effect found in male youth unemployment.

show abstract

Section: Resultssupporting

confidence: 85%

Section: Introductionmentioning

confidence: 99%

Investigating the Role of Foreign Direct Investment on Youth Unemployment Rate in Indonesia

Tanaya

Suyanto

2023

Binus Business Review

View full text Add to dashboard Cite

show abstract

“…This gap between the number of individuals and available job opportunities makes the employment ratio lower. Khan, et al, (2022) evidenced a similar impact of population growth rate on employment level. Summarizing, the current analysis shows that financial development and FDI inflow positively derive employment.…”

Section: Discussionmentioning

confidence: 62%

Effect of financial sector development and FDI inflow on employment rate in South Asia: New empirical evidence from ARDL approach

Farooq,

Tabash,

Al‐Faryan

et al. 2024

Journal of Public Affairs

View full text Add to dashboard Cite

The current analysis aims to explore the empirical nexus between financial development, foreign direct investment (FDI) inflow, and employment rate. To attain this aim, we collect 30 years of annual data over the period 1990 to 2019 from South Asian economies and employ the autoregressive dynamic least square (ARDL) model for regression analysis. The implication of the ARDL model was subject to the mixed stationarity status of the series as assessed by unit root testing. The robustness of the analysis was checked by employing the fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) models. The statistical analysis infers that both financial development and FDI inflow enhance the employment rate in the South Asia region. In addition, the empirical analysis infers that the gross capital formation, economic growth, and export volume have a positive while the population growth rate has a negative effect on the employment rate. The impact of underlying explanatory variables was found significant only in long run. The estimated coefficient values in the case of FMOLS and DOLS models support the direction of the relationship between explanatory variables and employment rate, implying the robustness of the analysis. The findings of the current analysis can be used to devise efficient economic policies to cope with the encroaching issue of unemployment in the South Asia region. This study offers the robustness to existing literature and complements the literature by exploring the underlying arrangement of study to the whole South Asia group.

show abstract

“…Applying the Feasible Generalized Least Squares (FGLS) technique, the study revealed an insignificant negative effect of FDI on youth unemployment in the SADC region. Khan et al (2022) explored the effect of FDI on employment creation in Pakistan from 1900 to 2019. Using the ARDL bound test approach; the study found that increases in FDI, industrialization and gross capital formation increases the opportunities for people to be employed both in the short and long-run.…”

Section: Review Of Literaturementioning

confidence: 99%

Untitled

2022

IJBESAR

View full text Add to dashboard Cite

AIM AND SCOPEThe International Journal of Business and Economic Sciences Applied Research (IJBESAR) is a blind peer-reviewed, scholarly journal devoted to publishing high-quality papers and sharing original business and economics research worldwide. The Journal considers only manuscripts that have not been published (or submitted simultaneously), at any language, elsewhere. Contributions are in English. The authors retain the copyright of their work without restrictions. The Journal is issued both in electronic form (for free) and in printed form as annual volume (free for the authors). The Journal accepts 9 types of articles defined as follows:1. Research Articles: A research article is a regular article which aims to present new findings. 2. Letters to the Editor: A letter to the editor is a short article which aims to present new findings that require fast publication procedures. 3. Notes: A note is an article (regular or short) which aims to present rather new findings. 4. Comments: A comment is a short article that makes comments on another article already published by this journal or replies to a comment; 5. Review Articles: A review article is an article which aims to present comprehensively already existing findings.6. Lecture Notes: A lecture note is a short review article. 7. Monographs: A monograph is a thesis of one or more authors on a unique subject; apart from the standard reviewing procedures, a monograph must also be accepted from a committee of specialists appointed by the Editor. 8. Innovations: An innovation is an article which aims to present new procedures or devices. 9. Selected conference articles: Upon an agreement with a conference committee, selected papers may be published by the Journal in a special section. In this case the editor will appoint in collaboration with the conference committee guest editors.

show abstract

Nexus Between FDI, Economic Growth, Industrialization, and Employment Opportunities: Empirical Evidence from Pakistan

Cited by 28 publications

References 59 publications

Investigating the Role of Foreign Direct Investment on Youth Unemployment Rate in Indonesia

Investigating the Role of Foreign Direct Investment on Youth Unemployment Rate in Indonesia

Effect of financial sector development and FDI inflow on employment rate in South Asia: New empirical evidence from ARDL approach

Untitled

Contact Info

Product

Resources

About