International Journal of Political Science and Development
 

International Journal of Political Science and Development

Vol. 5(5), pp. 161–167, August, 2017. 

DOI: 10.14662/IJPSD2017.026

ISSN: 2360-784X

Research Paper

Foreign Investment and Employment in the Context of Structuralism in Developing Countries: The Implication to Ethiopia

ENDALKACHEW BIRHAN

PhD Candidate in Environment and Development, College of Development studies, Addis Ababa University.

E-mail: endalk.birhan@gmail.com

Accepted 21 July 2017

The purpose of the paper was to evaluate Structuralist development thought in developing countries in contemporary world particularly in relation to foreign investment and its subsequent job creation. To this end, relevant secondary sources found from open internet sources and the hard copy was consulted. Thus, it was found that Structuralist development thought, emerged in Latin America, recommended import substitution industrialization and government intervention to support domestic industries. It was dominantly followed by Latin American and other developing countries in the 1950 and 1960s. While those developing countries have now introduced reforms, the thought support statism and doesn’t encourage foreign investment be it portfolio investment or foreign direct investment. But, unemployment is continued to be high in developing countries despite the attempt made by the government of those countries to create jobs. The population is increasing, the agricultural land remained the same and thus getting scarcer and scarcer and urbanization is expanding which all continued to be the factor for the employment problems in developing countries. Thus, it is recommended to create conducive environment to attract more foreign direct investment as the attraction is still relatively low as compared with even the developed countries while keeping employees safety and working to protect them from over exploitation. But, in order to make them withstand the competition, it is vital to empower the domestic industries as they may be ousted by Multi-National Companies having better capital and technologies.

Key Words: Structuralism, Foreign Investment, Employment, Developing countries, Theories of Development, Unemployment in Developing countries, Unemployment in Ethiopia

 

Cite This Article As: BIRHAN E (2017). Foreign Investment and Employment in the Context of Structuralism in Developing Countries: The Implication to Ethiopia. Int. J. Polit. Sci. Develop. 5(5) 161-167.

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