The Impact Of Foreign Direct Investment On Employment

Since the reform and opening up, China’s economic grow rapidly and has made remarkable achievements. Meanwhile, with the world economy globalization and integration process accelerating, the North American free trade area and Southeast Asia alliance cooperation organization established, and circulating of euro all marked great progress of the economic integration has made, the world economy interlinked increasingly. In such a context, the scale of international capital flows has expanded rapidly, and75%of that capital is taking the way of foreign direct investment.As the world’s second-largest economy and the first big trading nation, China has attracted the attentions of many multinationals, top500companies in the world come to invest in China one after another. Foreign business direct investment plays more and more important role in the country’s economic development in our country, and has appreciable impact to social and economic development, and most import impact is that to employment.Based on the correlation theory research about the influence of foreign company’s direct investment to employment in our country, using empirical analysis method, analysing the salient features of foreign company’s direct investment to employment in our country in1979-2009, explore the impact on employment growth. Firstly, this paper reviewed the domestic and overseas scholars about the relationship between foreign company’s direct investment and employment growth in main research results. Summarized the theory of foreign company’s direct investment and employment in China and foreign respectively. Then, this paper describes the1979-2009foreign direct investment and our country employment growth situation in details. According to the data provided by the China statistical yearbook, the salient features of the influence of foreign company’s direct investment to employment have generated into preliminary stage of development, high speed development phase modulation and improve stage. Based on the analysis of the phased characteristics, finding out the influence factors of the gradual characteristic, such as China’s economic growth mode, location factor, the industrial structure evolution, technological progress and investigated reasoning. Finally, in view of the current global economic recovery, combining with the gradual expansion of foreign company’s direct investment to employment in our country, find out the maximization effect of foreign company’s direct investment to employment, and put forward countermeasure and advice.