A Study Of The Impacts Of Foreign Direct Investment On China's Employment

The flow of foreign direct investment(FDI) have had a significant and far-reaching impact on China's economy and social life.At the same time, employment problem is increasingly becoming a focal problem for academia and government because of various factor's impact.FDI have many impacts on host country.And most of scholars are concerned on FDI growth effect,technology spillover effect and so on,but few of scholars are concerned on the relationship between FDI and employment,or the study is not enough depth.This thesis,based on previous study,will focus on the relationship between FDI and employment by theoretical analysis and empirical study to sort out the relationship between FDI and the number of jobs and provide the inspiration for the policies of FDI.The relationship between FDI and the number of jobs in China is key parts of this article.Firstly,the thesis will analyze the transmission mechanism of FDI from three aspects:FDI own activities,domestic investment affected by FDI and the other activities impacted by economy growth.Secondly,according to spillover effect of FDI,learning ability of domestic enterprise and the changes of market demand,the FDI impact on employ are divided in three stages which are short-term,medium-term,and long-term.Thirdly,we observe the FDI impact on Chinese employ.We grasp the specific characteristics of employment impact of FDI by observing direct contribution of FDI and its operation and production activities.Fourthly,we will analyze the relationship between FDI and China's employment by two different modes and prove our earlier theoretical analysis and observation.The last is conclusion of study.This thesis has two main characteristics:The first is the analysis point of view.The employment effect of FDI is divided into creation of employment,employment crowding-out effect,and analyze the transmission mechanism.The second is the econometric technique.The FDI impact on employment of host country is a dynamic process and we build two different models to compute dynamic effect and combined effect.