Browsing by Author "Woderyelesh Yeshiwas"

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    The Impact of AGOA related Foreign Direct Investment Inflows on Employment in Sub-Saharan Africa: The Case Study of Ethiopia
    (Addis Ababa University, 2016-06) Woderyelesh Yeshiwas ; Kidist Gebreselasie
    One of the objectives of African Growth and Opportunity Act (AGOA) is to promote investment in Sub-Saharan African countries and it’s believed that AGOA was able to create jobs through AGOA driven FDI in Sub-Saharan Africa (SSA). However, very few empirical studies have been conducted on the inflows of AGOA related FDI and its effect on employment creation to Sub-Saharan Africa countries. Thus, the study primarily examines the employment effect of AGOA related foreign direct investment in Sub-Saharan African countries particularly in Ethiopia. To examine the extent to which FDI inflows under AGOA contribute to employment for Sub-Saharan Africa in general and Ethiopia in particular, the study applied linear regression model using time series data from 1990 to 2014 for macro-level analysis and cross sectional data for micro-level (firm-level) analysis. The model result indicates that AGOA associated FDI inflows have negative effect on employment for SSA and it has insignificant effect on employment in Ethiopia at macro-level. Consistent to the macro-level findings, the model results for firm-level analysis indicates that AGOA associated FDI firms have insignificant effect on employment. Further the study identifies the short duration of AGOA, its Third Country Fabric Provision rule and the requirement of ‘U.S-Visa’ for some products as challenges for AGOA associated FDI in Ethiopia. Thus, the study recommends extending the program more than 10 years and simplifying the rules so as to attract quality investments that could generate more and steady jobs in beneficiary SSA countries