An Analysis Of The Impact Of Foreign Direct Investment On Employment

With the continuous improvement of the process of economic globalization, the move of international capital draws more and more attention of economists. And employment is related to everyone’s vital interests, so the study on the employment effects of Foreign Direct Investment is very useful. Recently, China has become the first choice of foreign investor. Liaoning province is one of the most developed provinces in China and the center of Old Northeast Industrial Zones. Many investors prefer to invest in Liaoning, because of its location. Liaoning also has rich labor recourses, so, this paper uses the example of Liaoning province to study the employment effects of FDI.Qualitative analysis and quantitative analysis, theoretical analysis and empirical analysis method is used in this paper. Firstly, the question is put forward by analyzing the current situation of FDI and employment. Secondly, the employment effects of FDI from the quality and the quantity are analyzed in this paper. And both of them include direct employment effects and indirect employment effects. Then use Eviews to find out the employment effects of FDI in Liaoning province. There are three parts of empirical analysis of the effects on quality of employment: the total employment effects, the direct employment effects and the indirect employment effects. Finally, the conclusion comes out through the previous analysis. In the long term, the effects of FDI on the quantity of employment and the quality of employment are both positive in Liaoning. And the indirect effects on the quality of employment are greater than the direct effects. At the end of this paper, some policy suggestions are given about how to use the creative employment effects of foreign direct investment.