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d with increases in productivity for recipient plants with less than 50 employees, Second study find that increases in foreign ownership negatively affect the productivity of wholly domestically owned firms in the same industry.

In the developing countries the surplus needs for goods and services it can be fulfill by imports or either can be fulfill by producing more. For producing more countries consider the foreign investment is one of the most important tools. The study Balasubramanyam, Salisu, and Sapsford (1996) investigated, within a new growth theory framework, the role which FDI plays in the growth process in the context of developing countries characterized by differing trade policy regimes. By using several variables in regression analysis studies revealed that the volume and efficacy of incoming FDI are vary according to whether a country is following the export promoting (EP) or the import substituting.

There are various components to improve employment by attracting foreign direct investment. The fundamental component including infrastructure, literacy rate, labor wages, costal location etc. The study Broadman and Xiaolun (1997) explained to analyze the geographical and sectoral distribution that China has evidenced in FDI inflows since reform began in 1978. The core study is to analyze the FDI with respect to GNP, Wage, Infrastructure, Illiteracy, and Coastal Location. The methodology is regression analysis. The study resulted that that FDI's geographical distribution in determined mostly by GNP, infrastructure, level of general education, and coastal location.

The study of Andersen and Hainaut (1998) analyzed foreign direct investment and employment in the industrial countries. This study analyzed the effect of outward foreign investment and the employment condition in the industrial countries. The empirical study also found that the outward foreign investment can decline the domestic investment in the developed countries. The study also indicated that the high labor cost in industrial countries also encourages the outward foreign investment similarly the high wages also avoid the inward foreign investment. Study also indicated the determinant of FDI is the previous trend of FDI, IT related investment and output, and the cross border merger and acquisition. The study Indeed, find clear evidence that outflows foreign direct investment complement rather than substitute for exports and thus help to protect rather than destroy jobs. By using time series regression analysis the study being conducted in the retrospect of the growth of real FDI outflow and inflows for the OECD has been very significantly increased. Research also stated as the merger and acquisition account for 70 to 80 percent of the outflow investment. Whereas the industrial countries which play a dominant role by outflow investment to the lower wages countries. The first part of the study is to find out the determinant of the FDI inflow and the outflow. The second part considered employment relationship with foreign investment while the third part summarizes the studies and focus on the linkage, notably via home investment, export and import.

The study of Ajaga and Nunnenkamp (2008) is the Inward FDI, Value Added and Employment in US States. The study investigated the inward FDI impact on the macro economic variables. The study find fairly strong evidence of favorable FDI effects on output and employm