The National Attributes Of Production Factors And The Income Distribution Of International Direct Investment

With the in-depth development of international economic and trade cooperation,a globalized economy with deep integration of economies has been formed,and investment liberalization has gradually become the development direction of a high-level global economy.In this process,international direct investment has played a key role.The essence of international direct investment is the international flow of production factors with capital as the carrier.The organizers and implementers are micro-transnational corporations.With the multinational corporations organizing production and operation activities on a global scale,the internationalization and globalization of resource allocation have been realized.However,due to the complexity and fuzzification of the benefits of countries participating in international economic and trade investment activities,it is difficult to directly determine the return of each participating entity and the level of income.Therefore,in recent years,the trend of "anti-globalization" has emerged in many countries and regions to varying degrees.At present,the research on the issue of international direct investment income only stays on its economic impact.Many existing studies have focused on the technology spillover effects,economic growth effects,trade creation effects of international direct investment.And these are few have directly measured the return of international direct investment or its share.Based on the guiding theory of the international flow of production factors,this paper proposes the economic analysis of the national attributes of production factors and the economic returns of production factors,and proposes the theoretical framework of the calculation of international direct investment returns,and an in-depth analysis of the principle of international direct investment returns.Through theoretical study,we can find that the factors of production are direct contributors to the profitability of international direct investment.The owner of production factors is the direct sharer of the profit of international direct investment.The return of production factors in international direct investment is relatively scarce.It is decided that the relative scarcity of production factors is closely related to factors such as production factor level and liquidity.Among them,advanced production factors are relatively scarce and relatively high.In the empirical study,this paper is based on the observations of 4,582,356 industrial enterprises included in the China Industrial Enterprise Database(1998-2013).According to the registered capital structure of each enterprise,foreign-invested enterprises are selected,and 390,639 sample observations are selected to construct micro-enterprises data sets.This paper uses the proportion of labor income,capital income and tax income in industrial added value of each enterprise,as the labor factor,capital factor and the economic factors returns.The results show that there are obvious regional differences and industry differences in the income share of the above three types of factors in foreign-invested enterprises,and many meaningful conclusions can be found from the historical changes.Based on the measured micro-enterprise factor income share data,this paper empirically studies the main factors affecting the production factor's return using the econometric analysis method.It is found that the level of the factor is the key to the income.Subsequently,on the basis of sorting out the land use policies of foreign invested enterprises in China,this paper uses the data of provincial level to analyze the issue of the income of China's land elements in the introduction of foreign investment.Based on the results of theoretical analysis and empirical research,this paper finds and proves that in the international direct investment activities,high-level production factors obtain high returns while low-level production factors obtain low returns.In the practice of introducing foreign direct investment in China,from the perspective of production factor income,the production factors provided by foreign investors are mainly advanced production factors such as patent technology and brand,which inevitably obtain high returns.While China mainly provides land and cheap labor,such low-level production factors,in comparison to obtain low returns,and even to some extent suffered losses.In order to solve this phenomenon,this paper proposes that China should actively cultivate domestic high-level production factors,improve the domestic factor market price mechanism,and carry out international M&A activities to obtain advanced production factors.Through these means,we can increase the possession of high-level production factors in China,increasing the income level of various production factors and creating possibilities for improving China's value chain status.