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oyment rate in small plants corporation is not negatively influenced by higher levels of FDI. Study’s findings do not in favor therefore the idea that FDI is increase employment growth in the home country. Public concerns about moving jobs abroad through FDI are increasingly loud. Only empirical analyses can shed light on this very important issue. Rather than focusing on multinational organization only, as in the previous literature, study tackled the problem from a many angle, comparing employment performance across local areas. Study measure of FDI encompasses the whole amount of investments abroad made by manufacturing multi- national companies based in Italy between 1996 and 2000. Study being viewed as complementary to the previous literature. Using a deferent methodology, which takes into account also non-multinational companies, and considering a broader range of FDI activities, there is no evidence suggesting a negative impact of FDI, including investments toward developing countries. Employment growth in local areas investing more abroad appears instead to be stronger than the industry average, especially in some capital- intensive sectors. Even when the study look at small plants, which are presumably not directly involved in foreign activities, employment does not seem to be negatively affected by FDI generated from local area and industry. To the best of study knowledge, this is the first estimate in the literature of the effect of FDI on non-multinational companies. Study has some limitation because of the data limitation.

The study of Corsi and Alessandro (2002) to find out the Employment Issue in the European Union The aim of this paper is to look at a basic issue when confronting the mediocrity of the employment situation in the European Union: Which theoretical explanation should be adopted for explaining employment and unemployment levels. Study discuss the variant of the 'main stream consensus' attributable to the European Commission, and study present an alternative approach to explaining the employment content of EU growth, based on a Keynesian viewpoint, with some hints concerning policy implications. Looking to the theoretical views under lying the policy recipes, study have illustrated the feebleness of the main stream consensus interpretation of the poor employment situation of the European Union thus, mainstream consensuses employment policies.

CHAPTER 3: RESEARCH METHODS

Method of Data Collection & Procedure

Method of data collection and procedure is to grasp the complete data year wise. At the data collection stage after going through both physical and digital libraries I found World Bank, United Nation, and State Bank of Pakistan publication as authentic source of secondary data.

Research and testing instrument

The collection of data for this research consisted of secondary data and SPSS as testing tool. During the analysis of data in SPSS, studies have used technique of simple linear regression (SLR) model, because the data has metrics types of date. Therefore, regression model is the best tool to evaluate this kind of data. The thesis is to analyze the effect of foreign direct investment on the different employment dynamics at 95% of confidence by using statistical test. Before running the regression analysis it is also being analyzed the mandatory issues such as