Study On The Effects Of FDI On Domestic Employment Of Three Leveled Industries

The foreign direct investment(FDI)influences economy in China from all aspects. As a country with huge population,China is currently facing severe especially under the situation of the economic crisis,the employment problem,thus appears more prominent. Therefore,both foreign direct investment and employment problems are always among hot discussions in economics researches.Generally speaking,the foreign direct investment's influence on the country which is being invested differs from each other in quantity.At present,as far as foreign direct investment and China's employment relations are concerned,researches basically focus on the normative analysis of the total amount,of foreign direct investment and employment relations at the industry level, while empirical researches are relatively few.Therefore,the investigation through in-depth study of foreign direct investment's impact on the employment must have been practical.This paper mainly studies the foreign direct investment's impact on employment of three leveled industries.First of all,the transmission mechanism of the impact of FDI on China's employment is analyzed based on foreign direct investment and employment relationship theory;Secondly,in addition to the analysis of general features of foreign direct investment in China and basic characteristics of distribution,the historical analysis method is adopted to analyze the present situation and reasons of foreign direct investment in the three leveled industries concerning the employment structure's changes.Furthermore,with Cobb-Douglas production function,based on the principle of profit maximization,the author set up an empirical model to conduct an empirical experiment on three leveled industries,respectively reached different conclusions.By a further study on the industy level,the author emphatically analyzes the tertiary industry which has the highest elasticity of employment,and gets creative views.Finally,to promote employment rate,as the starting point,a policy suggestion is proposed on how to reasonably lead FDI distribution in the three leveled industries.