Chinese FDI and Employment Creation in Zambia

Abstract

Zambia and China have nurtured their relationship that date back more than four decades ago. This paper looks at the effects of the Chinese foreign direct investment (FDI) on the Zambian labour market. China being the major player in Zambia’s economy is expected to create jobs for the locals who in turn will improve the economy of the country. It is evident that China has increased its FDI inflow to Zambia in the last decade of which mining and construction sectors have received the lions share. The numbers of jobs created by Chinese FDI have also been increasing steadily in the past 10 years especially in the construction and mining industries. However, the paper does not investigate on the quality of both FDI and jobs.

Keywords: Foreign direct investment (FDI), job creation, developing country, Zambia