The Development Of China's Labor-intensive Industries Based On FDI

With the accelerated process of China's industrialization and constantly improve the level of opening to the outside world, China gradually integrate into the international industrial division of labor system, undertake international industrial transfer as the one of the most important countries. FDI had a significant impact China's industrial growth, technological progress and structural adjustment. At present the relative shortage of capital, labor abundant condition of our country lead to develop labor-intensive industries. The development of labor-intensive industries will help absorb the large number of China's labor force. Increase the employment rate and re-allocation of urban and rural labor elements so as to promote the increase in output, the increase of national income will be help to accumulate of capital for the upgrade of the industrial structure.The developments of labor-intensive industries are facing some problem. For example, economies of scale were not obvious slow technological progresses. The industrial structure and level of economic development, lack of coordination. Therefore, labor-intensive industries depend only on the comparative advantages of participating in international competition is not inadequate. What is more important is how to make use of foreign investment and better development of labor-intensive industries. Firstly with the help of reviewing related theories and literature and define related concepts. On this basis, the analysis of foreign direct investment on China's labor-intensive industries development impact of the mechanism.Secondly, analysis of the distribution and characteristics of FDI on the basis of the theoretical. Since China implemented reform and opening-up policy, foreign direct investment is the first to enter the labor-intensive industries. So far, Foreign-funded enterprises in labor-intensive industries still account for a large proportion. Most of these enterprises are SMEs, promoted the development of China's labor-intensive industries to a certain extent.Then, make the empirical analysis about the impact of FDI on China's labor-intensive industries. It includes two aspects. Through the use of cross-sectional model analysis of industry, the impact of FDI to the traditional labor-intensive industries competitiveness is not very significant; the empirical results show that there is a positive impact for the processing industry includes labor-intensive production processes, Contrast two types of labor-intensive industries; I believe that China's economy has reached a critical period of transition.