The Impact of Chinese FDI on Employment Generation in the Building and Construction Sector of Ghana

One of the major concerns of governments in Africa in general and Ghana in particular is unemployment and underemployment. Most developing countries especially African countries compete to attract foreign direct investment (FDI) into their economies with the desire of improving employment level and securing a sustainable development leading to economic growth. In view of this, the creation of jobs for the unemployed and technology transfer through Chinese investments has become complementary since Chinese FDI can be an important source for employment, economic growth and transformation processes. This study focuses on the contribution of China's FDI on employment generation in the building and construction sector of Ghana. By using a robust regression model, the results show that, Chinese FDI flows on employment through direct effects on building and construction sector of Ghana have positive and significance on employment growth. This means that, Chinese FDI contributes to an efficient workforce which benefits an economy from high productivity and leads to growth in individual household incomes.