The Impact Of Foreign Direct Investment On China 's Income Gap

At first, this paper analyzes the relationship between foreign direct investment (FDI) and capital heterogeneity, labor heterogeneity, pointed out that in open conditions, FDI sectors have good management, advanced technology, economies of scale and other factors, which makes FDI sectors show some monopolistic advantages over the host sectors in those countries with FDI inflows, so there is a certain amount of "capital heterogeneity" between the FDI sectors and host sectors; at the same time, FDI has the characteristics of technological progress and technological spillover, in those countries which have FDI inflows, foreign-funded employees acquire in-house training and learning, which make the host country’s labor force received a "spillover" in the foreign sector, with the learning of skills and experience accumulated, the "labor heterogeneity" between the FDI sectors and host sectors deepened.Next, this paper analyzes the associations between the FDI, capital, labor heterogeneity and the income gap both from the theoretical and practical aspects. From the theoretical point of view, a modified " certain elements of the model"——a model with the "domestic" and "foreign" for specific elements show that in the open market, foreign trade within the foreign sector capital factor will make compensation changes foreign sector capital elements, affecting the income gap; And from a practical point of view, of FDI "region" and "the industry gathered to strengthen the competitive advantage of the area and industry, deepened within the foreign sector capital heterogeneity. Also further strengthened the pole region’s economic location and industry competitive advantage, making the the pole region’s rate of return on capital has increased relative to other areas, which not only laid the foundation to continue to attract foreign direct investment, and will expand to some extent within, the gap between the income of the foreign investment sector; while a combination of biased technical progress the "multinationals outsourcing" and "department" model described in a foreign capital inflow countries, multinational corporations "outsourcing"has led the country "foreign department" occurrence "sector-biased technological progress", so that the foreign investment sector has increased the demand for skilled labor, thus making the wage gap widening between the heterogeneity of the country’s labor force; From a practical point of view, foreign direct investment by foreign trade to adjust the structure of exports of goods and labor demand structure, through the influence of the heterogeneity of the workforce, thereby affecting the income gap between the heterogeneity of labor in our country.Finally, according to China’s31provinces and38industrial sub-industry specific data, the method through empirical analysis, estimates of various industries foreign funded sector capital output elasticity of labor output elasticity analysis of regional and industry level foreign the domestic sector capital and labor" degree of heterogeneity "size; within the study area and industry level, the foreign sector wage gap variation based on further through empirical analysis method to study the impact on our regional and industry levels, the foreign sector "wage gap" specific factors and degree of influence. The analysis shows that on the regional level:FDI in the eastern part of the region gathered to form the "economies of scale" effect the foreign sector capital and labor in the region and of the output elasticity is greater than1. Foreign sector of the central and western regions of the output elasticity of capital and labor and are less than1; Meanwhile, in the central and western regions, the state-owned domestic sector output elasticity of capital and labor, and are greater than1, while the eastern part of the state-owned domestic sector capital and labor output elasticity of less than1. This shows that the central and western regions of the state-owned domestic sector has the effect of " economies of scale ", while the eastern part of the state-owned domestic sector to create economies of scale.2, on the regional level, the beginning, the total wages of the foreign sector is much higher than the state-owned domestic sector, the foreign sector total wages higher than the state-owned domestic sector "level" was "diminishing trend", the state-owned domestic sector wages Total gradually "higher than" the foreign sector, and higher than the degree of increase year by year.The main factors that affect the regional department of foreign funded "wage gap": within the foreign sector department capital degree of heterogeneity, innovation investment ratio, technology-intensive than the, industrial cost profit rate gap between scientists and engineers in the proportion of the gap between technology developers,"college education workers accounted for","the ratio of capital investment and labor input than"At the industry level, the analysis showed that:1, and technology-intensive industries, the foreign sector output elasticity of capital and labor is greater than1, the foreign sector in technology-intensive industries have formed the "economies of scale" effect. At the same time, the output elasticity of capital-intensive industry, the state-owned domestic sector capital and labor and greater than1, China’s state-owned economy holds the dominant position in the capital-intensive industry, has formed a " economies of scale " effect.2, the industry level, labor-intensive and technology-intensive industries, the foreign sector total wages are higher than the state-owned domestic sector, technology-intensive industries, the foreign sector total wages than the state-owned domestic sector higher degree of declining capital-intensive type of industry, the foreign sector total wages lower than the state-owned domestic sector.3, main factors:the impact of each industry, foreign investment, funded departments "wage gap" within the foreign sector,"the degree of labor heterogeneity" and "capital degree of heterogeneity ","innovation investment ratio, exclusive technology difference","current assets turnover difference, the degree of industry aggregation, scientists and engineers in the proportion of the gap between technology developers" and "technology absorptive capacity" gap.