FDI Flowing、Income Disparity And Employment Transfer

Since reform and opening up, FDI has played a positive role in the development of Chinese manufacturing and in promoting employment transfer. However, FDI also causes employment transfer and employment alternative between regions and industries (Yang Yunyan,2003), which brings some prombles of imbalances. Plenty factors of production (including labours) transfering led to "peasant","labor shortage" and other social issues.Therefore, the research has positive theoretical significance and practical significance.In theory analysis, by browsing the foreign and domestic literatures, the dissertation sums up the existing viewpoints of FDI, income distribution and employment transfer. On the basis of related theory, the dissertation analyzes the relationship among FDI, income distribution and employment transfer; researches the character of Chinese labor market and the cause of Chinese labor transfer; indicates the direct and indirect effects of FDI flowing on employment transfer; reveals the mechanism of FDI on employment transfer; which takes income disparity as an intermediate variable, nd then establishes the framework of FDI inflow�'income disparity�'employment transfer.In empirical analysis, combining with Chinese data, the dissertation applies mathematical statistics, econometrics and CGE model to evaluate the effect of FDI on employment transfer and the role of income distribution. Firstly, the dissertation describes the character and structure of FDI, income distribution and employment transfer; calculates Theil index of FDI, income distribution and employment transfer; and then analyzes the spatial structure of Chinese employment transfer. Secondly, establish an available model on the basis of CES production function to evaluate the impact of foreign direct investment on employment transfer. The methods used in the study are known as simultaneous equations model. It applies the empirical analysis to get direct effect and indirect effect. The results show that the effect of FDI flowing on employment transfer of three regions (eastern, middle and western region). Thirdly, According to the related data, the dissertation builds China social national matrix (SAM table), and then establish an employment characteristics computable general equilibrium model (CGE model), which contains production, demand, elements supply (capital and labor), government and macro closure. Combined with China’s reality, the paper designs four different scenarios, uses GAMS to simulate the impact of FDI flowing on employment transfer, and compare the result of different scenarios. At last, the dissertation explains the impact of FDI flowing and employment transfer on national security and social stability, and then points out the necessity, feasibility and principle of China’s foreign investment policy and employment policy. According to the theoretical and empirical study, it promotes investment policy and employment policy on the basis of income distribution justice.The results indicate that:firstly, FDI inflow leads to income distribution and employment disparities, which cause employment transfer. Secondly, I get the effect of FDI inflow on employment transfer of three regions (eastern, middle and western region). The effect0.1011、-0.2158and-0.1931inside these regions, while it is0.0856outside these regions. Income disparity is the most important transmission channel. Thirdly, the effect of FDI flowing on employment transfer is different among iudustries. The effect is relatively large in the metal industry and other manufacturing industry of the secondary industry, and relatively large in the transportation, postal and telecommunications services industry and business accommodation industry of the third industry. This chapter is the CGE model simulation part of the dissertation.