Role of Foreign Direct Investment in Employment Generation
Journal Title: GJRA-Global Journal For Research Analysis - Year 2015, Vol 4, Issue 4
Abstract
Investment in a country by individuals and organizations from other countries is an important aspect of international finance. This flow of international finance may take the form of portfolio investment (acquisition of securities) or direct investment (creation of productive facilities). This paper focuses that an inflow of FDI improves economic growth and thereby enhances employment opportunities. The main objective of this paper is to find out the role of FDI in employment generation, especially in case of India. Most studies have shown that the impact of FDI on the host country has been generally favourable in developing countries. It is an important stimulus for the economic growth of India. It creates high perks jobs for skilled employees in Indian service sector. It has helped to raise the output, productivity and employment in many sectors, especially in service sector. Banking and insurance is first and telecommunication is second segment of service sector which pick the growth after coming of FDI. There has been a visible positive impact on the creation of jobs not only in those sectors attracting FDI inflows but also in the supportive domestic industries. FDI play a major role in world trade and investments because of their high management skills, technology, financial resources and other related advantages.
Authors and Affiliations
Dr Nidhi
Keywords
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