An Analysis On Foreign Direct Investment's Effect On The Employment Of Labor Force In China

The informationalization and globalization of economy are the two essential aspects of current development of world economy, and each productive factor, including Foreign Direct Investment (FDI), flows internationally, and has greatly affected the global economy and the employment in the host country. After the wide range and multiple-layer opening up policy after china's entry into the WTO, FDI impact deeply the economy of China. The thesis inquires mainly into the relations between FDI and the effect of employment in China. Firstly, the thesis analyses and illustrates the charge of the number of employment, related to FDI's new development in China. Secondly, the thesis illustrates the two different affects of labor force's right in the enterprises of FDI. One hand, these companies provide high salary and perfect welfare for talents; on the other hand, they are cruel to non-practiced labor force. Thirdly, based on the theory of invest –zone, the thesis illustrates the imbalance of FDI and the imbalance employment. In the last chapter, concerning how to guide the FDI's work more effectively, the author propose the suggestion according to the phenomenon analyzed in the previous part and the economic developing trend both home and abroad. i.e, emphasize on the development of labor intensive industry and technology capital intensive industry, arrange them according to the economic development level in different areas; on the other hand, induce the oversea enterpriser invests to the 3rd industry which has the strong ability to provide more occupations; besides, it should be noticed that the less developed areas require more investment and the less skilled labors require special legal protection. In one word, the unbalanced distribution of FID has to be changed.