The Role of Foreign Direct Investment to Technology Transfer for Local Employees: Evidence from SNNPRS, Hawassa Town, Ethiopia

Abstract

The study assesses the Role of Foreign Direct Investment to Technology Transfer in SNNPRS, Hawassa Town. To achieve the objective of the study, both qualitative and quantitative research methods were employed. A total of 112sample respondents were randomly selected from 577 target population to fill the questionnaires. The questionnaire, personal observations and key-informants interview were used for primary data collection. Qualitative data’s were analyzed by narration, while quantitative data’s were analyzed using descriptive statistics such as percentage, frequency, mean, and standard deviation. Moreover, chi-square was used to explain whether two attribute are associated. The survey result signposts that technological inflow through FDI is an important channel in capacitating the local work force, promoting STI and assuring the prosperity of the Town. However, the educational level of the local employees to absorb the transferred technology, the collaboration between foreign firms and local employees, and the national technology policy are very weak to benefit from FDI. The employees in these companies faced multifaceted challenges to absorb the intended technology based know-how thus all stakeholders should come together and mobilize the available local resources to mitigate these challenges of the employees in the study area.

Keywords: Technology Transfer, FDI, Foreign Firms, Local Employee