The Analysis Of Fdi Flows' Effect On The Economic Growth And Employment Of Qingdao

Since the reform and opening up from the year of 1978, China made full use of the opportunities of economic globalization as well as international industrial restructuring to attract foreign direct investments; the importance of foreign direct investments'effect on China's economic growth cannot be ignored. As the leading city of Shandong province, which is the export-oriented province, Qingdao plays the irreplaceable role over the efforts of attracting foreign direct investments. At the same time, the subprime mortgage crisis spread to the world quickly, forming a worldwide financial tsunami; as China's populous province, Shandong takes up 10% of all the country's employment pressure, whose long-standing difficult issue of employment has been highlighted with the outbreak of this worldwide financial tsunami. As the vanguards of the economic development of Shandong province, Qingdao bears the brunt of the negative impact on both the economic growth and the employment. So in the current difficult situation, how to properly treat FDI's impacts on Qingdao's economic growth, how to correctly view FDI's impact on Qingdao's employment growth effects, is particularly important.FDI-related theories are the theoretical basis in the paper as well as the research of the relationship between FDI and the economic growth at home and aboard as the basis for reference. This article analyses the current status of FDI in Qingdao, then chooses two typical cities to compare with it, which are Shanghai and Chongqing. Furthermore, this paper uses several measurement methods to analyze the relation among FDI flows, economic growth and employment of Qingdao as well as analyzing the issue of FDI's institutional construction in Qingdao, according to all of which this article brings out relevant policy recommendations.Basing on the previous research, this paper mainly does the following exploration: Firstly, articles of the relationship between FDI and economic growth mainly selected the national data or each province's data to do their research, while this paper chooses the relevant data of Qingdao, which is the leading city of Shandong province to analyze, which is more targeted of providing policy advice to further promote the economic development of Qingdao. Secondly, the relevant domestic research rarely involves the correlation analysis between FDI and employment, in the current realities of employment difficulties, this paper uses the panel data to find out the FDI's effects on Qingdao's employment, which has a certain practical significance. Thirdly, the study of FDI's institutional environment embodies certain innovation.