An Analysis Of The Impact Of Labor Endowment Evolution On China 's Attracting Foreign Direct Investment

The world economy is undergoing a period of slow recovery recently, and China’s economy is also in a period of download pressure and structural adjustment. In order to decrease the negative influence of global economy, and adjust the new structure of China’s economic development,attract adequately add adopt FDI is the key point for Chinese economic development. As a consequence, the thesis will take the labor endowment as the starting point and analyze its effect on attracting FDI. Under the situation of continually-increasing labor costs; the urgently-needed increase of labor’s qualification and urgently-changing the proportion of labor population, the thesis faces on whether the FDI has been affected by the above-mentioned factors, which has a significant influence on the policy-changing accordingly and our fast growing economy in China.This paper will mainly analyze the effect of the labor endowment on FDI from the three aspects: labor’s costs 、 labor’s qualification and proportion of labor population. In the first place, it analyses and concludes the theory of FDI, and then it explains the theory of labor endowment including labor’s costs 、labor’s qualification and proportion of labor population on FDI. Moreover, it will describe the situation of labor’s costs、labor’s qualification and proportion of labor population on the whole. Meanwhile, the paper will analyze the situation of the FDI in China from FDI inflows、FDI source regions and FDI industries. In additional, the paper will collect the date from 1983 to 2013 to make the empirical research by Multiple Linear Regression about factors especially labor’s costs、labor’s qualification and proportion of labor population which affect FDI in China. Lastly, from the above-mentioned analysis, the paper will give its suggestions upon labor’s endowment impact on FDI in China.