Research On Effects Of China's Foreign Direct Investment On Domestic Employment

Since reform and opening to the world, with the advance of economic globalization and the implement the "going out" strategy, the number of China's foreign direct investment has been increasing greatly;meanwhile with the function of multi-factors from home and abroad, the problem of domestic employment is so severity. "Employment" has increasingly become a hot issue in academic field and administrative departments. How does China's increasing foreign direct investment affect the domestic employment is just the problem this paper to discussThis paper employs both quantitative and qualitative analysis methods. Through the demonstration analysis the effects of foreign direct investment on employment in China, some basic conclusions have been made as followings:(l) China's foreign direct investment substitutes the domestic capital but promotes the enhance of domestic productivity;(2) In a short time The direct effects on domestic employment show as a negative number, the indirect effects show as a positive number, Sum the direct effects and the indirect effects we can get the total effects, the result is a negative number;(3) The degree of effects of China's foreign direct investment on the third industry employment is the most , the following is the second industry employment and the effects on the first industry employment is very little, thus China's foreign direct investment surely causes the upgrade of employment structure;(4)According to the area distribution diversity of China's foreign direct investment and domestic employment, this paper uses Hierarchical Cluster Analysis method , classifies 31 provinces, cities and municipalities in two groups, Shanxi, Fujian, Shandong, Guangdong, Tianjing,Zhejiang, Beijing, Shanghai belong to one group, the development of foreign direct investment and employment in this group is in perfect harmony, then the others are in the other group.The paper is composed of six chapters: The first chapter firstly introduces the general situation of foreign direct investment and domestic employment. Then putting forward the innovative after concluding relevant researches in the field of both home and abroad. The definition and data of the foreign direct investment is also explained.The second chapter systematically summarizes the theory of foreign direct investment and employment respectively and provides comprehensive comment to theories' kernel;the relationship of both sides is also included.The third chapter delineates the status quo of China's foreign direct investment and domestic employment from the following three aspects: quantity, industry structure and area distribution.The fourth chapter proposed a demonstration analysis on the effects. It is also focused on the effects of three aspects: quantity, industry structure and area distribution.The fifth chapter analyses the different situation of foreign direct investment and domestic employment in three representative countries, Korea, America and Germany.The sixth chapter draws the conclusion based on the study above and puts forward the possible suggestion concerning China's foreign direct investment, so as to strengthen its role in China's employment development.