Building a Robust Workforce: Why does FDI Motive Matter?

Olusegun Omisakin, Wasiu Adekunle, Oluwaseyi Vincent, Wilson Erumebor, Shakirudeen Taiwo, Faith Iyoha, Sodik Olofin and Ore Oluwaserantimi

Working Papers from African Economic Research Consortium

Abstract: Over the years, Foreign Direct Investment (FDI) inflows are often associated with the increased availability of a robust workforce. This is because FDI assists recipient countries in building human capital through technology and knowledge transfer. However, emerging trends indicate that motive(s) guiding FDI inflow immensely influence its role in capacity building activities of the available workforce in the host country. In Nigeria, recent FDI inflows are becoming more sensitive to the characteristics of the country's labour force. In the past years, FDI inflows usually focus on the oil-sector - resource-seeking activities, which have resulted in little or zero gains for the country in terms of employment creation, capacity building for the existing workforce, and insignificant human capital gains.

Date: 2024-04-05
New Economics Papers: this item is included in nep-cse and nep-int
Note: African Economic Research Consortium
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