Study On The Employment Effect Of Foreign Direct Investment On Sectors In China

This article analyzes the effect of foreign direct investment on employment in different sectors in China. It inspects the synthesis influence comprehensively and accurately, in order to give advises for government to formulate scientific policy to guide foreign investment, to make the foreign direct investment play an important role in ease the pressure on employment and to improve the structure of employment in China.Firstly, we analyze the distribution of employment in different sectors, the results is that: the manufacturing sector is still the most, other sectors in secondary industry show a downward trend in recent years. In tertiary industry, employment in foreign-funded enterprises mainly concentrate on transport, storage and post, wholesale and retail, social services, financial services and real estate industries. However, employment in other sectors is less.Subsequently, in order to get more accurate and objective measure about the effect, we set up a theoretical model to assess the direct effect and the indirect effect, and then we found that in different sectors FDI has different overall effect on employment: it promotes the increase of employment opportunity in such sectors as manufacturing, production and supply of electric power, gas and water, geological prospecting and water conservancy, transport, storage and post, wholesale and retail, real estate. But it suppresses the growth of employment in such sectors as farming, forestry, animal husbandry and fishery, mining and quarrying, education, culture, arts, radio, film and television, social services, health care, sports and social welfare, scientific research and polytech-nical services.Finally, based on the quantitative and qualitative analysis, we suggest that in order to promote foreign direct investment to create more employment opportunity in our country, our government should persist in attracting FDI in both labor-intensive industry and technology-intensive industry, at the same time pay more attention to guide the FDI flow and to improve the quality of workers and so on.