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An Empirical Research Of FDI's Effects On Employment In Central Region Of China

Posted on:2006-03-16Degree:MasterType:Thesis
Country:ChinaCandidate:F Y LiuFull Text:PDF
GTID:2156360152970728Subject:International Trade
Abstract/Summary:
The experts of State Council Development Research Center bring forward quasi warning of sinking central region, now the warning has become reality. The sinking central region can be simply explained as lower development speed than western region and lower development level than eastern region. The data of state statistical department demonstrates the eastern region's economic proportion in national economy increased from 50.2% to 75% during 1980 to 2003, however, central region's status decreased in the whole country. In 1980, per capital GDP equals to 88% of national average level; in 1990, it decreased to 83%; in 2003, it decreased to 75%. Eastern region's GDP is 6 times of central region and western great development made investment-increasing speed, which has ever lagged behind, faster than central region. In 1998, the fixed assets investment of western region increased by 31.2% which is 16.8% higher than central region; In 2001, the fixed assets investment of western region increased by 20.1% which is 2.5% higher than central region; central region's investment lagged very behind among national investment.The sinking central region problem demonstrates in many aspects and employment contraction deserves attention. According to census data, employment increasing is really different among regions during the ten years from 1990 to 2000. We may define 3 types of employment in accordance with the difference of employment, which are high employment increasing region, low employment increasing region and employment contraction region. From the space distribution of the 3 types of employment, we may summarize 2 basic features: firstly, the expanding eastern and western region's employment; secondly, central region's employment contraction. We regard decreasing total employment scale in the condition of continuous economic growth and increasing total population as employment contraction.There are many factors, which cause central region's employment contraction. The factors include GDP, domestic capital and foreign capital, international trade and labor supply, but which plays the comparatively key role?We believe FDI is very important influential factor. Since reform, FDI generally increases every year. Although FDI's quantity increased dramatically, it didn't distribute balanced among different regions. From regions, the accumulative total FDI's volume of three regions is 452.60 billion. The eastern region accounts for 88.10 %, The central region accounts for 8.80% and The western region accounts for 3.10 %. FDI's regional unbalanced distribution will affect regional employment greatly. So the essay will focus on FDI's effects on central employment so as to bring forward some policy recommendation for central region's growing up. The main contents include 5 chapters.Chapter 1: preface. In this chapter, I narrate systematically the meaning and aim of research, research actuality at home and abroad, the innovation, research logic and approach.Chapter 2: FDI & Employment theories. In this chapter, I systematically summarize domestic and overseas FDI & employment theories and provide comprehensive comment to theories' kernel so as to bring forward FDI and employment transfer. The new analysis framework can provide clear theoretical background and solid theoretical foundation for following analysis.Chapter 3: regional distribution of FDI and Employment. In this chapter, I describe static distribution and dynamic changes of FDI and employment among 3 regions and 8 provinces of central region since China's reform and opening up through detailed and accurate statistical data so as to point the features of central region's employment contraction and central region's fringe trend affected by outside transfer of population and labor in central region.Chapter 4: FDI and Employment transfer: study the reason of central region's employment contraction. In this chapter, I establish the influence factor model of employment through basic principles and approaches of econometrics and draw the conclusion that the FDI's effects on 3 regio...
Keywords/Search Tags:Foreign Direct Investment, Region, Employment, Effects
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