ESR 1 The Effect of Foreign Direct Investment and Official Development Assistance on Job Creation and Poverty Reduction
Early Stage Researcher: Muhammad Saleh
Research Directors: Prof. Dr. Wilhelm Löwenstein (Institute of Development Research and Development Policy, Ruhr University Bochum, Germany); Prof. Dr. Lisa Chauvet (Centre d’Economie de la Sorbonne, University Paris 1 Panthéon Sorbonne, Centre National de Recherche Scientifique)
The PhD project investigates how to integrate job creation and poverty reduction in developing countries into models of economic growth and identifies the different transmission channels that may exist between foreign direct investment and official development assistance on the one hand and job creation, poverty reduction and economic growth on the other. The project will empirically test the suggested transmission channels using panel data regressions and will contrast the results with estimations based on extended neoclassical growth models. Data sources: WDI, PWT, Conference Board, OECD.
Theoretical and empirical validation of the transmission channels between FDI/ODA and formal sector job creation and between job creation and poverty reduction.
The project involves a strong collaboration between the Institute of Development Research and Development Policy, RUB, and the Centre National de Recherche Scientifique/ Centre d’Economie de la Sorbonne at UP1 and includes mandatory research stays of the ESR in Paris for six months in total.
An additional six-month secondment is planned for with Deutsche Investitions- und Entwicklungs GmbH (DEG) in Cologne, Germany.