Research About The Effect Of FDI On The Wage Level

In the view of few researches about the impact of FDI on the current wage level and most of them focusing on theoretical analysis, the study select the sample of Jiangsu Province and do the empirical analysis of the wage effects of FDI. In recent years, Jiangsu Province has a great success on attracting FDI and become a model for learning over the country. In 2006, Jiangsu Province actually used FDI about 17.431 billion U.S. dollars, accounting for 27.7 percent of the country, maintaining first in the country in four continuous years. As a result, the research about Jiangsu Province will be very typical. what's the impact of large-scale inflow of FDI on the current wage level in Jiangsu Province? In addition, the geographical distribution of FDI in Jiangsu Province is extremely uneven. There is a big difference in the south region the north region and the central region of the wage level effects of FDI in Jiangsu Province depending on the economic gap. Is there any difference in the impact of FDI on the current wage level? What is the mechanism of the effect? This article will study these issues based on the Cobb-Douglas production function using the Panel-Data Panel Data Analysis. The study select statistics of 13 cities in Jiangsu Province from 1990-2006, establish the model for FDI in Jiangsu Province and also the south region the north region and the central region of Jiangsu Province respectively. The article do system positive study on the impact difference in three regions and explore the mechanism of the effect.