The Research To The Effect Of Foreign Direct Investment On Employment In Sichuan Province

With the acceleration of economic globalization and breakthrough of information technology in the world, the whole world looks like "global village", and all kinds of elements more frequently flow among countries, which will not only affect the world economy profoundly, but also has a deep influence on employment involving the problem of FDI to the host country. China has a large population, and the employment problem has a close relationship with the economic development as well as stability of society, and link to vital interests of thousands of households, and our government pays high attention to the employment problem. This paper will analyze the effect of FDI to employment of Sichuan in the aspect of employment level, the quality as well as structure. Besides affecting the number of employment, FDI will also have a obvious effect on structure and quality. As one of western provinces attracting foreign investment, Sichuan’FDI is not too much, but there is still a deep affect.It is universal to us that in recent years, FDI flows into our domestic market sharply, and has a profound influence on our economic development. Meaning while, employment has become a hot topic of theoretic area and functional departments under the function of various elements. However, the research about the effect mainly focuses on economic growing and technology transfer, analysis on the relationship between FDI and employment is not deep enough. This paper will research the effect of FDI to the number of employment in Sichuan from the aspect of the whole province, the crowding-out effect and the three industries, hoping to provide guidance for the government to take in FDI in the future.Basing on the recent materials, this paper focuses on the effect of FDI to the number of employment. Firstly, this paper analyzes the common theories and the effect of FDI to economy as well as employment. Secondly, taking the technology transfer and market demand as standards, this paper analyzes FDI from three aspects:short term, middle term and long term. Thirdly, this paper analyzes the direct contribution and explains the basic characteristics. Fourthly, from the descriptive view and building the models, this paper will research the effect of FDI to the number of employment in Sichuan. In the last part, this paper will propose some suggestions for future development.The main contributions of this paper are the following:firstly, this paper divide the effect of FDI into creating effect and crowding-out effect, and analyzes the transmission mechanism. Secondly, this paper uses a creative quantitative research method from different aspects, and takes the dynamic effect into the model.