The Rearch On The Employment Effect Of Foreign Direct Investment In Shandong

With the deepening development of the Reform and opening up, as the most populous province near the coast-Shandong Province has attracted more and more foreign direct investment, the actual use of foreign investment in2012was$123.53billion, accounting for11.06%of the national. In recent years, the use of foreign direct investment of Shandong Province has been among the top of China. It was significant to promote the economic development and people’s living standards of Shandong Province. Studies have shown that FDI is becoming a new power to promote the employment’s growth with the increasingly weakness of economic effect. Therefore, the impact of FDI on employment in Shandong Province is more significant. And employment is the people’s livelihood; to achieve full employment is one of the macro-control goals. It is significant to research the effect of FDI on employment in the increasingly severe employment situation. Domestic and foreign scholars have done a lot of research:some people think the employment effect is outstanding while others think not because of different angles and analysis of quantitative indicators. But under open conditions, foreign direct investment has a positive effect on job growth and employment structure.This article uses1982-2012time series of Shandong Statistical Yearbook and17cities’Panel Data to make empirical Analysis on the basis of previous research. Use quantitative research to analyze FDI’s employment effect, striving to draw real conclusions objectively. In the arrangement of contents, Firstly, this article makes a summary about the theory of the FDI and employment, and then describes the current situation of foreign direct investment in Shandong Province from the source region, industry differences, location factors and industrial distribution. Secondly, take further theoretical analysis on the relationship between them focusing on the impact on the number of jobs, quality of employment and job location. Using time series analysis of empirical results show that there is a long-term equilibrium relationship between FDI and employment in Shandong Province, and each1%increase in FDI would bring 0.0875%of employment growth, while FDI promotes the upgrade of industrial structure and the improvement of labor wages. The FDI employment absorption effect in eastern Shandong Province is greater than the middle and west through regression analysis of different location factors derived under the panel data, resulting in workforce of Shandong province inflows phenomenon from the middle and west to the east.