Undertaking On Employment Research Of Industry Transfer Effects

The employment problem has become a prominent issue in the process of themacroeconomic and social development, especially for the most populated province—Henan, lagging economic development can’t offer enough jobs for thenumerous,poor quality labor force, so the introduction of foreign capital and createemployment demand is imperative. The continued Globalization trend and theIndustrial transfer from the east to the west provided the opportunity for Henan. Inview of this, the paper use qualitative and quantitative methods, from two angles ofthe scale of employment and the quality of employment, analyze the impact of foreigncapital on the employment of Henan province.Firstly, this paper introduces the theories of industrial transfer and employment,the transmission mechanism between industrial transfer and the employment; thenintroduced the absorbed foreign capital and employment in Henan Province in2007-2012.Secondly, according to the Cobb-Douglas production function and the profitmaximization function to build measurement model of the scale of employment andthe quality of employment, and use the regional panel data of Henan Province in2007-2012to empirical analysis, and draw the last conclusions.Finally, on the basis of the results of empirical analysis, formed the followingbasic conclusions:First, impact of FDI on the overall number of jobs is not significant, withinindustries, the impact of FDI on employment in the primary sector is significantlynegative, but impact on the secondary industry and tertiary industry employment weresignificantly positive. Second, impact of investment from foreign provinces, and impact of investmentfrom Henan province, on the overall number of jobs were significantly positive,within the industry, the impact of the province’s investment on the three industries isnot significant, investment from foreign provinces has significantly promoting effecton the primary industry and tertiary industry, but the impact on employment in thesecondary industry was not significant.Third, because of the differences between the industries that absorbed foreigncapital, so the pulling effect is different for each industry.Fourth, the three types of investment all can promote higher wages, but the effectof FDI to promote is maximum.