The FDI's Effect On The Industry Structure And Employment Sturcture

Foreign Direct Investment is the economic focus of the whole world. The implementation of the open policy in the recent 20 years shows that FDI takes an important role in our national economy. As one of the largest FDI absorption provinces, Shandong's FDI amount has keeping on increasing in the 20 years. Based on the time series historical data of the FDI of Shandong province, industry structure and employment structure and so on, an comprehensive ecometric analysis is taken to verify the FDI's effect on the industry structure and the employment structure, where we use the relation analysis, regression analysis, Granger causality analysis and co-integration theory etc.. The result conveys that there is evident correlation between FDI of Shandong province and industry as well as the employment structure. According to the empirical test results, combing with the reality of Shandong province, here we propose several relevant solutions and suggestions.