| ABSTRACTThe effect of foreign direct investment in service sector on employment should be paid more attention to with the increasing pressure on employment problem in Shanghai. Although the proportion of foreign direct investment in service sector is small, it can make more employment growth, and the direct and indirect effects are complicated.In this paper, we treat the employment effects of foreign direct investment in service sector as a research system to study the effect of foreign direct investment on employment quantity and quality. In this process, qualitative and quantitative analysis methods are used.Firstly, we analyze the foreign direct investment and employment of three pillar service industries in Shanghai and can conclude that:at the present stage, the employment proportion of transport and storage services sector, wholesale and retail trade services sector is slowly declining, and that of estate industry is increasing, but the service sector employment proportion of total employment in Shanghai is on the rise.Secondly, in order to get more accurate and objective measure about the effect, a theoretical model is set up to assess the direct effect and the indirect effect on different service sector and we can conclude that the direct effects are positive and indirect effects are different from direct effects but very small.Thirdly, we analyze the employment quality. Through the analysis we can know that the foreign direct investment in the service sector is conducive to promoting the employment quality. This section describes the spillover effects of foreign direct investment and then we set up a model to prove the effect. And in the model we use wage as statistics. At last, we analyze the way how to effect the employment quality, mainly by improving the supply and demand of education.Finally, based on the quantitative and qualitative analysis, we suggest that in order to promote foreign direct investment in service sector to create more employment opportunity in Shanghai. |
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