FDI and its Impact on Local Industries and Employment

Foreign Direct Investment (FDI) has emerged as a significant driver of economic growth, especially in developing economies. This paper explores the influence of FDI inflows on local industries and employment generation, with a focus on both positive spillovers such as technology transfer, skill development, and infrastructure creation, and negative impacts such as crowding out of domestic enterprises. Using both secondary data and survey methods, the study examines the relationship between FDI inflows and employment levels, highlighting sectoral variations. The findings suggest that while FDI enhances job creation and industrial modernization, it may also lead to market dominance by multinational corporations, affecting small and medium enterprises (SMEs).