Research On The Impact Of Foreign Direct Investment On China’s Labor Factor Of Environment

With the development of economic globalization, the use of foreign direct investment scale expands unceasingly in our country, foreign capital through international investment and trade channels enter our country, is bound to have an impact on several aspects of China’s industrial development and sovereignty, cause the industrial safety problems. The industrial environment is an important part of industrial safety evaluation index system, including financial environment, labor factor of environment, resources and ecological environment, policy environment. The labor factor of environment is not only directly related to the increase in output and economic growth, but also related to people’s lives and social stability, usually with the quality of labor (labor productivity) and labor costs (wages) two indicators to measure. With the development of foreign direct investment (FDI) in the continuous progressive investment area, FDI brings not only capital, but also brought advanced production technology and management experience, which will inevitably from the two ways of capital and technology to change the host country’s labor productivity and wage level, and influence the labor factor of environment in the host country. Due to different industries have different characteristics of the industry, therefore pathway may also be different, according to different industry characteristics, industries can be divided into capital intensive industries and labor intensive industries and knowledge intensive industries. This article analysis the effect of FDI on labor productivity and wages of industry overall, the capital intensive industry and labor intensive industry and knowledge intensive from the industry overall and industry two angles by using multiple regression, and find the way to the influence of FDI on the labor factor of environment. The innovation of this paper is also in a model can reflect the FDI influence on labor productivity(wages) by two ways, and can compare FDI through the capital or technology introduction to influence the labor productivity (wages).The results of the study indicate that FDI promotes labor productivity and wages of the whole industry, capital intensive industry and technology intensive industry from the way of technology spillover, there is no obvious effect on the labor intensive industry labor productivity and wages increase; the introduction of FDI from capital way hindered the whole industry and the different factors intensity industry to increase labor productivity and wages. Comprehensive two ways, FDI increases labor productivity of the whole industry, capital intensive industry and technology intensive industry, reduces the labor productivity of labor intensive industry; FDI increases wages of the whole industry and capital intensive industry, reduces wages of the labor intensive industry and technology intensive industry. It will widen the labor intensive industry, capital intensive industry and technology intensive industry wage gap, the two aspects indicate that the entry of FDI did not promote our country labor factors endowment advantage, but increase the labor productivity and wage income gap between different industry sectors, which is not conducive to our country labor market stability, deteriorated the environment of our country labor factors. Then put forward to guide rationally FDI into the capital intensive industries and technology intensive industries; and guide the domestic investment into labor intensive industries; enhance the domestic enterprise technology absorption capacity, give full play to the technological spillover effect of FDI; give full play to the advantages of the labor resources, strengthen the professional education and training.