China's Outward Foreign Direct Investment And Domestic Labor Market

The impact of outward foreign direct investment(OFDI)on the employment and skill wage premium in the home country has always been one of the focuses of literature research.After the reform and opening up,relying on export-oriented development strategies and the introduction of large amounts of foreign direct investment(FDI),China's economy has flourished.The rise of the economy,the continuous upgrading of the industrial system and the optimization of the opening up pattern have also promoted the enthusiasm of Chinese firms to invest abroad,and the scale of OFDI has been continuously expanding.With the successive determination and implementation of “One Belt,One Road” and other strategies,it is foreseeable that more and more Chinese firms will invest abroad and participate in international competition in the future,and the role of Chinese firms in the world market will be further enhanced.This is bound to raise questions about the impact of OFDI on the already severe domestic job market? How does it work? Comparing with developed countries such as Europe and the United States,China's OFDI and labor market have its own unique features.It is necessary to investigate the relationship between them based on China's reality.It is of great practical significance for promoting the coordinated development of OFDI and the labor market,as well as the formulation of related policies in the future.This article follows the research idea of combining characteristic fact description,mechanism analysis and empirical analysis to examine the impact of OFDI on the domestic labor and employment market.From the perspective of chapter distribution,the full text consists of eight chapters.Chapter 1 is the introduction,which mainly introduces the research background and significance,and puts forward the research content,methods and innovations of this article;Chapter 2 starts with the definition of concepts,reviews related theories,and combs the literature on the relationship between OFDI and the home country's employment market research;Chapter 3 analyzes and summarizes the development summary of China's OFDI and the characteristics of manufacturing enterprises;Chapter 4 uses the mechanism analysis method to explain the theoretical level of OFDI on the overall domestic employment,employment structure and skill wage inequality And put forward research hypotheses;Chapters 5 to 7 use the matching samples of the “List of Overseas Investment Enterprises(Institutions)” issued by the Ministry of Commerce of China from 2003 to 2013 and the “Database of Chinese Industrial Enterprises” issued by the National Bureau of Statistics.Hypothetical propositions are tested empirically;Chapter 8 draws the full text conclusions based on the aforementioned research,makes research prospects,and puts forward targeted policy recommendations on the coordinated development of OFDI and the labor market.This article draws the following research conclusions:First,we established an overall theoretical framework for the influence of Chinese enterprises' OFDI on my country's employment market,and discussed the influence mechanisms of OFDI on my country's overall employment,employment structure,and skill premium.Theoretical analysis shows that China's OFDI affects the overall domestic employment level through export effects and competitiveness effects;at the same time,it also affects my country's employment skills structure through technological innovation effects and production transfer effects;finally,it affects the increase and increase in the relative employment demand of high-skilled workers and profit increase mechanism affects the premium level of skill wages in my country.Second,we empirically tested the impact of OFDI on my country's general employment,and found that Chinese manufacturing enterprises' OFDI generally promoted employment growth in my country.The employment promotion effect of OFDI is not affected by the investment destination;the employment promotion effect of OFDI is obviously affected by the ownership of the investment enterprise and the type of investment.Compared with non-state-owned enterprises,the employment promotion effect of stateowned enterprises' OFDI is not obvious;compared with other types of investment,the employment promotion effect of resource-based OFDI is not obvious.Third,Chinese enterprises' OFDI has generally promoted employment upgrading in the manufacturing labor market.Among them,the employment upgrading effect of OFDI in labor-intensive industries and OFDI flowing into developing countries is stronger.Compared with non-state-owned enterprises,the OFDI of state-owned enterprises has no significant effect on domestic employment upgrading.In terms of investment types,the employment upgrade effect of commercial and resource-based OFDI is not significant,while production-based and technology-based OFDI has brought employment upgrades.OFDI has promoted the upgrading of employment skills in my country's manufacturing industry,mainly because the production transfer mechanism works,and the effect of the technological innovation mechanism is relatively weak.Fourth,Chinese companies' OFDI has generally exacerbated skill wage inequality.Among them,the promotion effect of the skill premium of private enterprises' direct investment abroad is greater than that of state-owned enterprises;the promotion effect of the skill wage premium of OFDI is more significant in labor-intensive industries;no matter which type of investment,it promotes the level of domestic skill wage premium.The effect of resource-based investment is weak.The mechanism test shows that the relative increase in employment demand for high-skilled workers and the increase in profits are the two channels for OFDI to increase skill wage inequality.The innovations of this article are: First,this article examines the overall impact of OFDI on my country's labor and employment market,clarifies the mechanism of OFDI from the three dimensions of employment,employment structure,and skill wage premium,and expands the theoretical analysis framework of existing research;The second is to empirically test the impact of OFDI on the employment skills structure of our country,and to clarify its mechanism,enriching the existing empirical research;the third is to clarify the impact of OFDI on the skill wage premium and its mechanism,and resolve it from the enterprise level Contradictions in income distribution provide more insights.