Research On The Impact Of Foreign Direct Investment On The Employment In Shandong

The four key macro objectives of one economy include economic growth, price stability, full employment and the balance of international payment. And employment is a significant component of economic development. With the deepening of domestic reforms and further liberalization of our economy, the increased amount of utilizable into China has been exerting more and more influence on our employment level. Shandong province has been an economic power and attracted large amounts of foreign investments and ranks the tops in terms of utilized FDI, so FDI has a significant impact on employment in Shandong province. But the empirical tests on the impact are scarce. Then it is very important and significant to do a systematic and deep analysis on this issue to detect the problems and propose suitable policies for them.This thesis mainly studies on the impact of FDI on the employment in Shandong. As usual, it begins with relevant literature reviews, both foreign and domestic, about the impact of FDI on employment. On this basis, it mainly describes and analyzes the status quo of utilized FDI in Shandong province. Then, the thesis adopts normative analysis in analyzing the impact on the level, quality and location of employment in Shandong. What follows is the empirical analysis into its impact on the above-mentioned level, the industrial structure and the level of the wage in Shandong province.The fourth part is the empirical analysis. It is the most important sector of this thesis. Based on the theoretical analysis, a model is built to test the impact of FDI on the level, the industrial structure and the quality of the employment in Shandong province. The fifth part includes the conclusion and recommendations. Through the research, we know that FDI encourages the total amount of the employment in Shandong, promotes the industrial structure and increases the wage level. But at the same time, we may conclude that the unbalanced distribution of FDI in locations leads to the flowing of labor from the middle and western areas of Shandong to its coastal areas. Finally, according to the conclusions we have mentioned above, the thesis brings forward some proposals.