The Effect Analysis Of Foreign Direct Investment On China's Employment

Accompanied by the deepness of China's reform and opening up and the obvious trend of economic globalization, the total amount of foreign direct investment in China has been growing rapidly. FDI has played a indispensable role in promoting economic development of China. The employment is an important part of economic development. So the introduction of FDI also has a certain impact on the employment. As more and more FDI pours into China, its structure and the capital and technology composing are changing a lot. Such transformation has been doing more and more passive effects on employment. In order to understand the relationship between FDI and employment and promote the contribution rate of FDI to GDP, it is necessary and significant to do some research on the all-round influence of FDI to employment.At present, there have been a lot of researches about the relationship between FDI and economic development. But the subject on how the FDI making effect on employment has not been discussed enough. Many studies limited on the normal research. And a few uses empirical research. Especially few of them are expatiated the negative effects FDI made on the domestic employment. Therefore the thesis begins with the development situation of FDI in China and makes a try to analyze the effect of FDI including total amount, structure and quality by using the data of China statistical year book and empirical analysis. After this, this thesis has done some research on the changing trend of the effect for FDI to employment according to the different time and discussed the negative effect. Through the analysis, we can know that FDI made the positive contribution to the total amount of our employment. It promoted the industrial structure through its industrial distribution and then led the industry distributed structural change for employment. It has accelerated the flow of labor market and made great contribution to the surplus-labor shift. It also has improved the quality of labor and the level of wage. By this, it has promoted the whole level of employment. But at the same time, because of its uneven distribution and investment structure as well as the increase of capital compose in FDI and the change of the foreign investment way, it also bring great negative effect on employment. So in the last part, the paper brings forward the suggestions about how to make good use of FDI.