Foreign Direct Investment,Employment Opportunities And Economic Growth:Evidence From Selected Asian Countries

The present study econometrically examines the relationship between economic indicator(FDI,Gross capital formation,Domestic income,GDP,Industrialization)and employment opportunities in selected Asian countries by Bangladesh,China,Indonesia,Japan,Kuwait,Malaysia,Oman,Pakistan,Philippines,Saudi Arabia,Singapore,Sri Lanka,United Arab Emirates and Thailand.The study applied pooled OLS,random effect,fixed effect and Feasible Generalized least square(FGLS)methods to empirically examine the nexus among studied indicators.Foreign direct investment is a great source of providing employment opportunities for instance technology skills and helps along with capital.There is a positive effect of foreign direct investment on employment opportunities.Gross capital formation growth rate has expected positive sign but its impact on the indicator of employment opportunities is insignificant.There is a significant negative impact of Per capita growth rate of gross domestic product on the dependent variable.Impact of the Gross domestic income on the labor force participation rate is significantly negative.Industrialization has positive effect on labor force participation rate so when more industries are added it results in more employment opportunities.As the foreign direct investment increase it expands industrial growth which ultimately results by providing more employment opportunities.On the basis of empirical results,the study recommended the following policy implications.Firstly,the policy makers should make economic friendly policies for better economic growth and better living standard of people.This is due to the fact that better economic growth leads to increase employment opportunities in Asian countries.Secondly,the policy makers should focus on enforcing such policies which can boost domestic investment as well as foreign direct investment to reduce unemployment.Thirdly,Industrialization should be promoted by the state to enhance employment rate.The governments should encourage and facilitate new firm's entrepreneurs and small scale industries to reduce unemployment.