A Study On R&D Investment's Effect To Employment Of Liaoning Province

In revitalizing the northeast old industrial base, a number of resource-based industries and heavy chemical industries in Liaoning province face, such as transition, technical and industrial structural unemployment and so on, leading to some vacant posts and a large number of unemployed people, economic development and lower employment elasticity. If you can not solve the adjustment of industrial structure caused by the technological progress, employment structure upgrade and the imbalances of the labor skills structure, to ease the pressure of structural unemployment, it is bound to impact on technological progress and industrial restructuring. R&D investment as the core of technological progress in promoting industrial restructuring and changing the mode of economic growth played an important role, studying the employment effect of R&D investment in the transformation of the industrial structure, not only in theory, to understand the R&D investment and employment changes rules, but also to better establish coordinated development policies between R&D investment, and economy and employment in order to promote the economic stability and harmonious development of Liaoning old industrial base.Based on Petty-Clark theorem, employment slasticity theory, endogenous growth theory, and a large number of relevant documents both in home and abroad, the paper tries to explore R&D Investment's Effect to Employment of Liaoning Province. First of all, through the aspects of employment flexibility, R&D investment on GDP flexibility, and R&D investment on employment flexibility, the article analyses present situation of Liaoning's R&D investment, as well as employment gross and structure. Then, this is followed by empirical research on the Liaoning Province R&D employment effects by employing econometric methodology and software Eviews6.0, after the ADF unit root test, co-integration test, Granger causality test, and impulse response function. The paper finds that the R&D investment plays some positive role in the growth of total employment, and the role in the employment in the tertiary is obvious. But it plays a negative role in the secondary industry. So the paper points out the Liaoning government should put more R&D investment to the tertiary industry to create more job opportunities. Finally, the paper raises measures to coordinate Liaoning province R&D investment and employment, such as to broaden the channels of R&D input, to balance R&D investment and employment, to improve the social security system and so on.