How Foreign Direct Investment Influences Workers in Developing Countries - Dissertation Example

The paper "How Foreign Direct Investment Influences Workers in Developing Countries" is a perfect example of a finance and accounting dissertation.  The fundamental aim of this study was to find out the influence of Foreign Direct Investment (FDI) on the skills and wages of workers in developing countries. The objectives of the study were to determine how Foreign Direct Investment influences the skills of workers in developing countries, to investigate if Foreign Direct Investment can increase working efficiency in developing countries and to find out how Foreign Direct Investment affects wages in developing countries. The researcher used secondary data methodology through the inclusion and exclusion criteria to systematically viewbooks, journals and publications. This data was then analyzed through discussion and supporting evidence and tables and figures were used to enhance visualization. Findings from the study revealed that FDI affects both skills and wages positively and negatively. Also, they showed that FDI increases working efficiency in developing countries. The researcher recommended that all governments in developing countries should improve their policies and infrastructure in order to attract inward FDI. It was also recommended that domestic firms should establish training methods and travel agents. The major limitation of the study was resource constraint; this led to the access to a smaller sample and more reliability on secondary sources that would minimise the validity and reliability of the findings.

Keywords: Foreign Direct Investments, workers, developing countries

CHAPTER 1: INTRODUCTION

1.1 Background of the study

The 21st century set in with the widespread acceptance of foreign direct investment (FDI) as one of the most popular elements of globalisation. As a result, the majority of countries across the world have managed to attract substantial amounts of FDI. Reiter and Steensma (2010) argue that foreign direct investment (FDI) plays a crucial role in the economic wellbeing of both developed and developing countries.