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Title: EFFECT OF FOREIGN DIRECT INVESTMENT ON PRIVATE SECTOR WAGE LEVELS IN KENYA
Authors: PETER KIMINZA
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PETER KIMINZA Lecturer, Department of Business, Chuka University, Kenya.
MLA 8 KIMINZA, PETER. "EFFECT OF FOREIGN DIRECT INVESTMENT ON PRIVATE SECTOR WAGE LEVELS IN KENYA." Int. j. of Social Science and Economic Research, vol. 3, no. 2, Feb. 2018, pp. 690-699, ijsser.org/more2018.php?id=49. Accessed 2018. APA KIMINZA, P. (2018, February). EFFECT OF FOREIGN DIRECT INVESTMENT ON PRIVATE SECTOR WAGE LEVELS IN KENYA. Int. j. of Social Science and Economic Research, 3(2), 690-699. Retrieved from ijsser.org/more2018.php?id=49 Chicago KIMINZA, PETER. "EFFECT OF FOREIGN DIRECT INVESTMENT ON PRIVATE SECTOR WAGE LEVELS IN KENYA." Int. j. of Social Science and Economic Research 3, no. 2 (February 2018), 690-699. Accessed , 2018. ijsser.org/more2018.php?id=49.
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Abstract: The average wage growth in Kenya has been growing with a low rate of about 5% per year. Kenya achieved foreign direct investments of 1.55% ($990 m) of the GDP in the year 2014, indicating a small increase from 0.68% achieved in 2013. This study sought to determine the impact of FDI on the private sector wage levels in Kenya. The specific objective was to determine the effect of FDI on wage level in private sector. Purposive sampling method was used to select a sample private sector wage levels for 30 years between 1985 and 2014. Error correction model was developed from the data, which was used to make inferences on the relationship between FDI and private sector wage levels in Kenya. The findings of the study revealed that there existed an insignificant negative relationship between FDI and private wage level with a p - value of 0.2435>0.05. The model was found to be not a good predictor since its R 2 of 0.26<0.5. The study recommended suitable policies to improve economic development and achieve vision 2030 and also help local investors and foreign investors in understanding the circumstances surrounding them. The study will benefit the government as it will recommend suitable policies to improve economic development and revenue generation.

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